Acquisitions and 'strong international pipeline' of shows deliver profit growth for ITV

Media giant ITV plc achieved profit and revenue growth in 2015 thanks to its aggressive acquisition strategy and “strong international pipeline” of TV programmes.

Over the 12 months to December 31, the London-headquartered firm’s pre-tax profit soared by £131m to reach £843m, while its earnings before interest, taxes, and amortization (EBITA) grew year on year by 18% to £865m.

ITV’s total revenue at the end of last year stood at £3.38bn, in comparison to £2.96bn at the same point in 2014.

The year saw ITV make a number of acquisitions both in the UK and overseas. In April, the firm snapped up Dutch media business Talpa Media, the company behind TV series The Voice, for an initial cash consideration of around £362m.

Domestically, ITV completed a series of smaller acquisitions, including production companies Mammoth Screen in May and Boom Supervisory Limited a month later, as well as Cats on the Roof Media.

The chief executive of ITV, Adam Crozier, commented: “ITV delivered another strong year as we continue to grow and strengthen the business in the UK and internationally.

“Revenues were up 15% to just under £3bn and for the sixth consecutive year we achieved double digit profit growth, as adjusted EBITA grew 18% to £865m, with all parts of the business performing well.

“ITV Studios continues to perform strongly both organically and from our recent acquisitions, particularly Talpa. Through our ongoing investment ITV Studios has become a global production business with total revenue up 33% to £1.2bn and with 53% of revenues now coming from outside the UK.”

He continued: “We have a very strong international pipeline of new and returning drama including Victoria, Tutankhamun, Houdini and Doyle, Cold Feet, Poldark, Shetland, Aquarius, Endeavour and Vera as well as entertainment formats The Voice, The Voice Kids, Dance Dance Dance, I’m a Celebrity… Get Me Out Of Here!, The Chase, Hell’s Kitchen and Saturday Night Takeaway.

“ITVS has already secured a higher proportion of 2016 revenue at this point in the year than in previous years and our good drama slate gives us confidence into 2017.”

Last week, ITV completed its £100m acquisition of UTV, making the Northern Irish broadcaster part of its global television business.

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