ITV raises full-year dividend after achieving rise in profit and revenue

26th Feb 2014 07:05

- Dividend raised 35 per cent- Revenues driven higher by non-NAR- Pre-tax profit increases- Growth expected across all divisions in 2014ITV raised its full-year dividend by 35 per cent to 3.5p per share as it reported a rise in revenue and profit. The owner of the UK TV station also announced a special dividend of 4p per share, amounting to £161m, for the year through December 2013, in line with 2012.The company said it reflects the "board's confidence in the ongoing growth and cash generation of the business". The group posted annual revenue of £2.7bn, up 8% on a year earlier, driven by non-net advertising revenue (NAR). That was well ahead of the company's own guidance as provided in its third quarter update, for a rise of 'around 2%'.External revenues rose 9% to £2.38bn, with total non-NAR revenue up 17% and ITV Family NAR up 2%.ITV Studios, the television production arm, achieved a 20% increase in revenue to £857m as the firm focused on lowering costs and made four acquisitions in the UK and US. In the UK, the company bought The Garden and Big Talk and in the US acquired Thinkfactory Media and High Noon Entertainment.Broadcast and online revenue rose a modest 3% to £1.89bn, boosted by growth in online, pay and interactive and 2% growth in ITV Family NAR as the television advertising market returned to growth.Total adjusted pre-tax profit grew 27% to £581m, bolstered by cost savings of £28m and revenue growth.Earnings before interest, tax and amortisation (EBITA) before exceptional items jumped 21% to £620m as the EBIT margin increased to 26% from 23%. ITV ended the period with £164m of net cash, compared to £206m at the end of 2012. Looking to 2014, the company expects "all parts of the business to see further growth"."In ITV Studios we anticipate good growth, primarily driven by the acquisitions we have made in the UK and internationally and we expect to see continued double digit growth from online, pay and interactive," the group said."ITV Family NAR is expected to be up 2% in Q1 despite being adversely impacted by the timing of Easter and the unwind of 2013's benefit from the timing of other broadcasters agency deals."RD