Broadcaster ITV reveals 10 per cent drop in advertising revenues over first quarter

But the group said its first quarter fall was better than the wider market and said it was “looking forward” to the third quarter, with Love Island and the Rugby World Cup expected to “draw large broadcast and streaming audiences”.

The group added that it is seeing strong growth in digital advertising revenues up 30 per cent at £87m in the first three months of 2023 and expected to rise by more than 20 per cent in the second quarter.

Carolyn McCall, ITV Chief Executive, said: "ITV continued to make significant strategic progress in the quarter and all parts of the business performed in line with expectations.

"ITVX has sustained its strong launch, with a 49 per cent increase in streaming hours and a 29 per cent growth in digital revenue in the quarter. Exclusives, such as Nolly and The Twelve attracted new viewers, 80 per cent of whom went on to explore other content on ITVX. In addition, live simulcast viewing of our biggest shows and sports events, including Love Island and the FA Cup attracted large streaming audiences.

"ITV Studios continues to demonstrate significant strategic momentum. With a strong pipeline of content and committed revenues, it is on track to deliver mid-single digit revenue growth over the full year, ahead of the market.

"This follows record revenues in Q4 (the fourth quarter) 2022 and with the phasing of deliveries expected to be weighted to the second half of 2023.

"Total advertising revenue in Q1 (the first quarter) was down 10 per cent as expected and better than the wider TV advertising market.

"We are looking forward to Q3 (third quarter) with Love Island and the Rugby World Cup set to draw large broadcast and streaming audiences.

"ITV is successfully executing Phase Two of its More Than TV strategy, despite the current challenging macro and geopolitical environment, as we continue to satisfy the growing demand for content globally and the desire for advertisers to secure both mass reach and targeted digital audiences."

The statement added: “We expect ITV Studios to deliver at least 5 per cent average organic revenue growth per annum to 2026, and grow ahead of the market as we further strengthen and diversify the business, against the background of continuing strong global demand for content. In 2023, we are on track to deliver mid-single digit revenue growth, ahead of the market, following record revenues in Q4 2022 and the phasing of deliveries within 2023 weighted to the second half.”

Richard Hunter, Head of Markets at interactive investor, commented: “ITV remains a tough watch, with a decline in revenues partially offset by a promising launch of the ITVX streaming service. The fall in overall revenues was much as expected, and driven largely by a 10 per cent dip in total advertising revenue.”