(Alliance News) - ITV PLC on Wednesday reported a rise in total revenue rise in the first nine months of 2022, driven by a big increase for ITV Studios, but suffered lower advertising revenue due to "tough comparatives".

Shares were down 6.2% at 68.52 pence each on Wednesday morning in London. They are down 37% over the past 12 months.

For the nine months that ended on September 30, the London-based television broadcaster and content producer said total external revenue was GBP2.52 billion, up 5.9% from GBP2.38 billion a year ago.

Total non-advertising revenue was GBP1.62 billion, up 13% from GBP1.43 billion. This represents over 50% ITV's total revenue.

However, total advertising revenue was down 2.2% to GBP1.33 billion from GBP1.36 billion a year ago. For the third quarter alone, total advertising revenue was down 14%, with "July down 9%, August down 21% and September down 14% compared to the same periods in 2021", ITV said, blaming "tough comparatives".

In ITV Studios, revenue was up 16% to GBP1.39 billion from GBP1.19 billion a year ago. The company said it expects ITV Studios revenue to exceed 2019 revenue of GBP1.12 billion in 2022. It also expects ITV Studios to deliver revenue growth in excess of its 5% medium-term target in 2023.

Furthermore, ITV said it remains committed to delivering ITV Studios adjusted earnings before interest, tax, depreciation and amortisation margin guidance of 13% to 15% from 2023. But in the shorter term, it expects the margin to be at the lower end of the range as a result of the current inflation in the production market.

In ITV Media & Entertainment, ITV said revenue during the period was GBP1.56 billion, down 1.9% from GBP1.59 billion a year earlier "as expected against tough comparatives".

ITV said ad-funded streaming service ITVX will be rolled out across devices and platforms in the coming weeks with the full launch on December 8.

Chief Executive Carolyn McCall said: "While we remain mindful of the macroeconomic and geopolitical uncertainty, there's strong operational momentum across both our Studios and Media & Entertainment divisions, as we continue to build a resilient, diversified business that can take advantage of the global growth in the demand for quality content and the desire of advertisers for both mass reach and data-led addressable advertising, targeting millions of UK viewers."

In July, ITV said pretax profit for the six months that ended on June 30 surged 65% to GBP219 million from GBP133 million the same period a year before, as external revenue increased 8% annually to GBP1.68 billion from GBP1.55 billion.

By Xindi Wei; xindiwei@alliancenews.com

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