ITV Studios revenue drop impacts profits despite advertising gains

ITV studios has reported a decline in revenue due to the ongoing impact of the US writers' strike, which has led to a decrease in profits. Despite cost savings and an increase in advertising revenue, these were not enough to counterbalance the fall.

The company's share price experienced a nearly eight per cent drop in early trading, as reported by City AM.

Group revenue for the first nine months of the year decreased by eight per cent, falling to £2.7bn from £2.9bn in 2023.

Revenue at ITV Studios, known for producing Ludwig for the BBC and Rivals for Disney+, saw a 20 per cent decrease in the year to date, amounting to £1.2bn.

ITV attributed this drop to the scheduling of deliveries with more shows planned for the fourth quarter than the third and the 2023 US writers' and actors' strike.

The broadcaster anticipates that revenue will continue to decline in the mid-single digits over the full year.

However, ITV stated that despite these challenges, ITV Studios is still "on track" to deliver record adjusted earnings before interest, tax and amortisation in the full year, thanks to efficiency