\n\tAs ITV prepares to sell its networks biz to Sky, the 70-year-old broadcaster\u2019s studios arm has hit a milestone. <\/p>\n
\n\tWith the publication of its annual results this morning, CEO Carolyn McCall said ITV has hit a \u201ckey strategic goal.\u201d ITV Studios, plus its digital Media & Entertainment (M&E) biz, now accounts for two thirds of overall total revenue, she added. <\/p>\n
\n\tRevenue at ITV Studios once again outgrew the wider broadcasting business at ITV last year, the results revealed.<\/p>\n
\n\tITV Studios, which makes and sells the likes of Love Island and Hell\u2019s Kitchen, posted a revenue rise of 5% to \u00a32.13B ($2.84B), with \u201cexternal revenue\u201d \u2013 shows made outside ITV \u2013 shooting up by a heftier 10%, although revenue from the U.S. actually declined by 18%. Adjusted EBITA remained flat for ITV Studios. <\/p>\n
\n\tITV Studios, which is run by Julian Bellamy, would also have been pleased to see scripted growth of 10% for the 12 months to 31 December 2025, another key target. A further target, having a quarer of its business come from streamers, was met comfortably at 28%, rising by 3 percentage points.<\/p>\n
\n\tNotably, today\u2019s results said \u201cthe highly fragmented nature of the content market means that ITV Studios remains relatively small compared to the total addressable market, presenting a significant opportunity to capture further market share.\u201d <\/p>\n
\n\t\u201cWhile overall market growth has slowed compared to historical levels, we expect continued growth in key segments in which ITV Studios is well-positioned, including content licensing (particularly digital and FAST channels), as well as sustained demand from streaming platforms for scripted and unscripted content,\u201d added the results.<\/p>\n
\n\tOverall, ITV group revenue for the year remaiend flat at \u00a34.12B, with revenue in the Media & Entertainment biz, which represents the commissioning and advertising side, declining by 5%. Group adjusted EBITA was down slightly to \u00a3534M and adjusted pre-tax profit was down 5% to \u00a3448M.<\/p>\n
\n\tThe results reflect a pattern from the past few years, ever since McCall and Bellamy set weighty growth targets<\/a> for ITV Studios, a number of which have now been hit.<\/p>\n \n\t\u201cAs part of the strategy, in 2022 we set intentionally ambitious targets and have been adapting as necessary in a rapidly evolving media and entertainment market,\u201d said McCall. \u201cThese targets are helping us transform ITV \u2013 creating a much more entrepreneurial, ambitious culture. Our strategy is yielding clear results, generating strong outcomes across both ITV Studios and M&E. And in doing so, we have achieved a key strategic goal with two-thirds of our revenues now coming from ITV Studios and our digital M&E business.\u201d<\/p>\n \n\tThe ITV network is up for sale. Late last year, ITV, which had been rumored to be fattening up for a sale for months, shocked the industry when it revealed Sky wanted to buy its networks division<\/a>. That deal, which does not include the ITV Studios production and distribution arm, rumbles on, while interest appears to remain in ITV Studios. Banijay, which is about to merge with All3Media, refused to rule out ITV Studios interest earlier this week<\/a>.<\/p>\n