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• Total Group Revenue: Down 3%, with growth in advertising and digital revenues offset by a decline in ITV Studios revenues.

• Adjusted EPS: Up 23% to 9.6p.

• Final Dividend: Proposed at 3.3p, with a full year dividend of 5p, totaling around GBP190 million.

• ITV Studios Revenue: Down 6%, impacted by US strikes and slower FTA commissions.

• US Revenue: Up 2% year on year at constant currency.

• Global Partnerships Revenue Growth: Up 8% driven by strong catalog sales.

• Studios Adjusted EBITA: Grew 5% with a margin of 14.7%.

• Digital Advertising Revenue: Up 15%, now 26% of total ad revenue.

• Overall Digital Revenues: Up 12% to GBP556 million.

• M&E EBITA Margin: Increased by 2.1 percentage points to 11.9%.

• Adjusted EBITA: Increased by 22% to GBP250 million.

• Cash Conversion: Returned to a typical level of 83%.

• Net Debt: GBP431 million, with a leverage of 0.7 times.

• Pension Scheme Surplus: GBP182 million, with no expected pension contributions for 2025.

• Free Cash Flow Since 2018: Over GBP2.8 billion generated.

• Cost Savings in 2024: GBP60 million, GBP10 million higher than expected.

• Digital Revenue Growth Since 2021: 60% increase.

• Streaming Hours Growth Since 2021: 61% increase.

• Monthly Active Users Growth Since 2021: 44% increase.

• ITVX Digital Revenue: Exceeded incremental costs by 2024, earlier than expected.

• Zoo 55 Digital Revenue: GBP60 million in 2024, up 30% year on year.

• Warning! GuruFocus has detected 5 Warning Signs with ITVPF.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ITV PLC (ITVPF) reported double-digit earnings growth across the group, with record profits in Studios and increased profits and margins in Media & Entertainment (M&E).

• ITVX has driven strong growth in digital viewing and revenue, with the company expecting to recoup cumulative incremental investment in ITVX earlier than planned by the end of 2025.

• The company achieved GBP60 million in non-content savings, surpassing expectations, and has a robust cost-saving program in place for future efficiencies.

• ITV Studios delivered record profits despite challenges such as US strikes, showcasing resilience and diversification in its business model.

• The company maintains a strong balance sheet with a net debt to adjusted EBITA ratio of 0.7 times, and has extended the maturity of its debt, ensuring financial stability.

Negative Points

• Total group revenue was down 3%, with growth in advertising and digital revenues offset by a decline in ITV Studios revenues.

• Revenue in the UK international and US scripted businesses was lower, impacted by factors such as US strikes and softer demand from European broadcasters.

• The anticipated implementation of advertising restrictions on less healthy food from October 2025 could impact future advertising revenue.

• ITV PLC (ITVPF) faces increased competition in the ad market, particularly with the introduction of ad tiers by streamers.

• The company expects content costs to be around GBP1.25 billion in 2025, which could pressure margins if not offset by revenue growth.