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Rebalanced ITV delivers continued growth

Full year results for the year ended 31 December 2016

Financial highlights

External revenue

£3,064m

Non-NAR revenue

£1,855m

Adjusted EBITA

£885m

Adjusted EPS

17.0p

  • Financial highlights

    Revenue growth driven by double-digit increase in non-NAR

    • Total external revenue up 3% to £3,064m (2015: £2,972m), including currency benefit.
    • Total non-NAR revenue up 11% to £1,855m (2015: £1,664m), now 53% of total revenues.
    • Total ITV Studios revenue up 13% to £1,395m (2015: £1,237m).
    • Online, Pay & Interactive revenue up 23% to £231m (2015: 188m).
    • Net Advertising revenue down 3% to £1,672m (2015: £1,719m), performing ahead of the TV ad market.

    Rebalanced business delivering adjusted profit growth

    • Adjusted EBITA up 2% to £885m (2015: £865m), despite the decline in the ad market.
    • Studios adjusted EBITA up 18% to £243m (2015: £206m).
    • Broadcast & Online adjusted EBITA down 3% to £642m (2015: £659m).
    • Adjusted EPS up 3% to 17.0p (2015: £16.5p).
    • Statutory EPS down 10% to 11.2p (2015: 12.4p) impacted by restructuring and earn out costs.

    Confident in the underlying strength of the business

    • Broadcast business remains robust: Main channel SOV up 3%, online viewing up 42%.
    • ITV Studios has a healthy pipeline of new and returning programmes.
    • Building our digital business in Studios and Broadcast.

    Strong balance sheet, healthy liquidity

    • Flexibility and capacity to continue to invest across the business and deliver sustainable returns to our shareholders.
    • Given our good performance the Board is proposing a final dividend of 4.8p, giving a full year dividend of 7.2p, up 20%, in line with our policy.
    • Reflecting ITV’s strong cash generation and the Board’s confidence in the business, the Board is proposing a special dividend of 5.0p per share, worth just over £200 million.
    • The Board is committed to a long term sustainable dividend policy. The ordinary dividend will grow broadly in line with earnings, targeting dividend cover of around 2x adjusted earnings per share over the medium term.
  • Outlook for 2017 and beyond
    • ITV Studios on track to deliver good organic revenue growth in 2017.
    • Online, Pay & Interactive will continue to perform strongly.
    • ITV Family NAR forecast to be down around 6% over the first 4 months, impacted by current economic uncertainty.
    • Over the full year ITV will outperform the TV ad market.
    • Will deliver £25m of incremental cost savings in 2017 as previously announced.
    • We have a strong balance sheet and continue to see clear opportunities to invest behind our strategy in the UK and internationally.

Revenue growth driven by double-digit increase in non-NAR

  • Total external revenue up 3% to £3,064m (2015: £2,972m), including currency benefit.
  • Total non-NAR revenue up 11% to £1,855m (2015: £1,664m), now 53% of total revenues.
  • Total ITV Studios revenue up 13% to £1,395m (2015: £1,237m).
  • Online, Pay & Interactive revenue up 23% to £231m (2015: 188m).
  • Net Advertising revenue down 3% to £1,672m (2015: £1,719m), performing ahead of the TV ad market.

Rebalanced business delivering adjusted profit growth

  • Adjusted EBITA up 2% to £885m (2015: £865m), despite the decline in the ad market.
  • Studios adjusted EBITA up 18% to £243m (2015: £206m).
  • Broadcast & Online adjusted EBITA down 3% to £642m (2015: £659m).
  • Adjusted EPS up 3% to 17.0p (2015: £16.5p).
  • Statutory EPS down 10% to 11.2p (2015: 12.4p) impacted by restructuring and earn out costs.

Confident in the underlying strength of the business

  • Broadcast business remains robust: Main channel SOV up 3%, online viewing up 42%.
  • ITV Studios has a healthy pipeline of new and returning programmes.
  • Building our digital business in Studios and Broadcast.

Strong balance sheet, healthy liquidity

  • Flexibility and capacity to continue to invest across the business and deliver sustainable returns to our shareholders.
  • Given our good performance the Board is proposing a final dividend of 4.8p, giving a full year dividend of 7.2p, up 20%, in line with our policy.
  • Reflecting ITV’s strong cash generation and the Board’s confidence in the business, the Board is proposing a special dividend of 5.0p per share, worth just over £200 million.
  • The Board is committed to a long term sustainable dividend policy. The ordinary dividend will grow broadly in line with earnings, targeting dividend cover of around 2x adjusted earnings per share over the medium term.
  • ITV Studios on track to deliver good organic revenue growth in 2017.
  • Online, Pay & Interactive will continue to perform strongly.
  • ITV Family NAR forecast to be down around 6% over the first 4 months, impacted by current economic uncertainty.
  • Over the full year ITV will outperform the TV ad market.
  • Will deliver £25m of incremental cost savings in 2017 as previously announced.
  • We have a strong balance sheet and continue to see clear opportunities to invest behind our strategy in the UK and internationally.