ITV's half-year profits rise on cost cutting progress

30th Jul 2013 07:09

ITV reported a 16 per cent rise in adjusted pre-tax profits for the first half to 270m pounds as the UK TV network achieved higher margins and cut costs.Earnings before interest, tax and amortisation (EBITA) was up 11% to £291m, boosted by ITV Studios and Broadcast and Online divisions which achieved 26% and 7.0% EBITA growth respectively. Total revenues climbed 2.0% to £1.3bn, as an 11% increase in non-advertising revenue (NAR) mitigated a 3.0% decline in ITV Family NAR. NAR was driven by significant growth in Online, Pay and Interactive and in ITV Studios.ITV said its £20m cost saving target remains on track and savings will be used to fund investments in creative and commercial capabilities. Net debt at the end of the period came to £52m following acquisitions in the UK and US, dividend payments, debt buybacks, pension contributions and the acquisition of the company's London headquarters. "We're making good progress with our strategy of growing and rebalancing the business as we build new revenue streams and improve margins," said Chief Executive, Adam Crozier."In spite of monthly volatility we expect ITV Family NAR to be broadly flat for the nine months to the end of September with the third quarter up 9.0%. We expect both ITV Studios and Online, Pay and Interactive to deliver double digit revenue growth for the year as a whole as we continue to rebalance and strengthen ITV."The company raised its dividend 38% to 1.1p. RD