ITV raises dividend as profits and revenues soar

British broadcasting giant ITV is rewarding shareholders with a special dividend worth 156m pounds after posting 2012 results which showed a rise in profits and revenues.

British broadcasting giant ITV is rewarding shareholders with a special dividend worth 156m pounds after posting 2012 results which showed a rise in profits and revenues.

The board also offered shareholders a final dividend of 1.8p, bringing the full-year dividend up to 2.6p, compared to 1.6p in 2011.

The hike in dividend came on the back of strong results for the year to December 31st.

Total revenues climbed 5.0% year-on-year to £2.5bn, fuelled by a strong performance in ITV Studios and the Online, Pay and Interactive business.

Adjusted profit before tax jumped 17% to £464m while adjusted earnings per share increased 16% to 9.2p.

Earnings before interest, tax, amortisation and exceptional items surged 13% to £520m.

During the period the company's Broadcast and Online unit saw profits rise 9.0% to £413m as the company gained advertising from high audience numbers.

ITV invested further into Online, Pay and Interactive which produced revenues of £102m, a 26% increase.

The broadcaster's positive net cash soared to £206m from £45m.

"We're positioning ourselves to take advantage of the opportunities arising from the increasing number of platforms needing high quality content and from changes in consumer behaviour, in particular the surge in mobile viewing," said Chief Executive Adam Crozier.

"We're now almost three years into our transformation plan and our strong performance is delivering growth right across ITV, enabling us to build a stronger and more balanced business."

He added that a key part of the transformation plan was building an international content business.

ITV Studios achieved growth in the UK and overseas markets, with revenues up by £100m to £712m, boosted by investments in creative talent and developing new programmes.

"We have an increasingly robust balance sheet and strong cash flows which can support the investments required to deliver our growth strategy and future shareholder returns," Crozier added.

RD

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