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ITV Cuts Costs Amid Weaker Advertising Market
Confirmed
In Short: ITV announced plans to cut costs by £30 million by the end of the year, with £25 million coming from content savings and £5 million from discretionary non-content savings, as the advertising market weakens.
ITV announced plans to cut costs by £30 million by the end of the year, with £25 million coming from content savings and £5 million from discretionary non-content savings, as the advertising market weakens. ITV chief executive Dame Carolyn McCall said the group is taking 'decisive action' to offset the weaker market, according to Bdaily and The Hollywood Reporter.
Despite the decline in linear advertising, ITV Studios' performance for the first nine months was in line with expectations, with production deliveries and licensing deals heavily weighted to the fourth quarter, as reported by The Hollywood Reporter.
The company's digital advertising revenue growth was driven by continued momentum on ITVX, which delivered record viewing during the period, according to The Hollywood Reporter.
Consolidated cash costs reached US$3,107 per ounce, up from US$2,394 in the second quarter and well above the full year guidance range of US$2,200 to US$2,450, as reported by the deep dive. Revenue fell to US$43.6 million from US$59.2 million in the second quarter on 10,689 gold equivalent ounces sold, even though the average realized price climbed to US$4,151 per ounce.
What this adds
The company's digital advertising revenue growth was driven by continued momentum on ITVX, which delivered record viewing during the period, according to The Hollywood Reporter.
What's confirmed
- Bosses cautioned they could fall by up to ten per cent in the final three months of the year as it said demand for advertising had “weakened”.
- ITV chief executive Dame Carolyn McCall said the group was taking “decisive action” to offset the weaker market, stripping out £30 million in costs from its media and entertainment division.
What's still developing
- President Donald Trump’s net approval rating has fallen across 10 major beef-producing states in the month since he announced a temporary increase in beef import quotas designed to bring down the cost of beef, according to polling data.
- "The jury's out on the timing but less so on the direction." A weaker dollar reduces purchasing power for Americans - something overseas travellers know all too well.