The amazing ITV recovery ... or is that TV advertising recovery?
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ITV’s recovery continues. It’s a topic that I’ve covered a few times, with ITV returns to profitability in 2010 (after confidently predicting its demise in 2008).
This, after all, seems to be less of a story about strategic decisions made by ITV and more about the spectacular recovery of TV advertising after the collapse of 2008.
According to this BBC article and video clip ITV has reported pre-tax profits of £286m for 2010. Helped by the continued success of shows such as X Factor and Coronation Street, net advertising revenue rose to £1.5bn, up from £1.29bn a year earlier. The company said its improved performance and reduced debt levels meant it would reinstate dividend payments later this year. Net debt fell to £188m, down from £612m in 2009.
The company suffered a loss of £2.7bn in 2008, due to a slump in advertising revenue during the downturn.
“ITV is benefiting enormously from the advertising bounceback that started last year and is continuing this year,” an independent media analyst told the BBC. “TV advertising counts for about 75% of ITV’s revenues.”
You might like to look back over advertising booms - but not if you’re a newspaper.
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