Leading broadcaster ITV, have annouunced that the current Covid-19 crisis has had an increasing impact on its advertising revenues. With deferrals coming from all sectors rather than just the previously reported travel and sports betting industries.
The financial impact of advertising revenue changes could be significant with the firm confirming that “over a full year each one percent decline in total advertising revenue reduces revenue and profit by c.£17 million.”
ITV Chief Executive Carolyn McCall said: “We are operating in unprecedented and uncertain times, requiring us to take difficult decisions, plan carefully and act with speed. Our absolute priority is to protect our people, while trying to ensure that we deliver the news and programmes our viewers value and love to watch, and to keep them informed. We are actively taking measures to reduce costs and manage our cash flow so that we are best positioned to continue to deliver our strategy of building a digitally led media and entertainment company over the medium term.”
The firm however did say it expected to benefit from increased demand for library sales, due to it being a leading global distributor with strong relationships with broadcasters and platform owners.
This announcement follows news that production on both Leeds-based Emmerdale and Manchester-based Coronation Street would be put on hold due to the coronavirus.
Emmerdale typically works six weeks in advance of broadcast, which suggests that it will remain on air for half for the government’s proposed 12 week period.
Despite the current impact of Covid-19 on advertising revenues, ITV saw the biggest overnight audience on any channel so far in 2020, with viewing figures peaking at 11.1million.