ITV expects to out-perform

Terrestrial broadcaster ITV has forecast its first half net advertising revenues (NAR) will be ahead of the market, thanks to an expected boost from the Euro 2012 football tournament.

The company issued guidance of a year-on-year (y/y) increase of 3% in NAR for the first half of 2012, despite ITV Family NAR easing 1% y/y in the first quarter to £362m from £365m the year before.

Non-NAR revenue surged 43% to £290m from £203m the year before, driven by ITV Studios, which saw revenues leap 61% to £212m from £132m a year earlier. Total external revenue, after adjusting for internal supply arrangements, rose 13% to £565m from £500m in the first quarter of last year.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

"Share of viewing for ITV Family was down by 2% in the four months to the end of April, however we remain confident in our schedule with Euro 2012 in June and a strong Autumn line up,"said Adam Crozier, ITV's Chief Executive.

"ITV Family NAR started the year better than we anticipated but is nevertheless down 1% in Q1. While the underlying television advertising market continues to be broadly flat, we expect ITV's ad revenue to be up around 3% in H1, helped by Euro 2012. Going forward we expect to out-perform the TV ad market in H1 and for the year as a whole," Crozier added.

JH