Downton, Corrie and BGT help ITV pay £156m special divi

Three years into a 5 year turnaround, Britain's largest free-to-air commercial broadcaster has posted profits up 6% and is paying shareholders a special £156m dividend.

by Andrew Saunders
Last Updated: 30 Jul 2013
ITV chief exec Adam Crozier (who some may recall was CEO of the Royal Mail for quite a while) can afford to give himself a pat on the back (a box set of hit show Mr Selfridge would seem appropriate) – the channel has made 2012 profits of £348m, up 6%, on revenues up 3% to £2.2bn. 
 
And in a gesture off gratitude to his long-suffering shareholders, a special one-off dividend of £156m is to be paid, equating to 4p per share. ITV’s share price, which has risen 50% in the past six months, rose a further 1% on the news. 
 
In best soap opera traditions, it’s all a long way from how things looked a few years back for the channel that brings us classic shows like Coronation Street, Downton Abbey and, er, Britain’s Got Talent. The post-2008 collapse in ad revenues coupled with the rise of online entertainment alternatives made a stately-home sized hole in the firm’s business model, and had shareholders needing more than a swift half in the Rovers Return to restore their spirits.
 
Crucial to Crozier’s rescue recipe has been a shift towards programme production and online activities, in order to lessen reliance on pure ad revenues, and it seems to be paying off. None advertising revenues exceeded £1bn for the first time, including £712m from its production business ITV Studios, which makes shows like Come Dine With Me and Dancing on Ice. Commenting on the results, Crozier said ITV was becoming a ‘Stronger and more balanced business.’
 
The results have gone down well in the City, exceeding most analysts’ expectations and getting the year off the a flying start. But with TV ad revenues continuing to look flat, will ITV be able to keep up? Tune in next week for the latest gripping instalment…

Find this article useful?

Get more great articles like this in your inbox every lunchtime

The art of leadership: From Marcus Aurelius to Martin Luther King

Transformational, visionary, servant… enough is enough.

Lockdown stress: 12 leaders share practical coping tips

In hard times, it's far too easy for the boss to forget to look after...

Don’t just complain about uncertainty, find the tools to navigate it

Traditional in-person research methods won’t work right now, but that’s no excuse for a wait-and-see...

How well have CEOs performed during the coronavirus pandemic?

A new survey offers a glimpse into what their staff think.

Why women leaders are excelling during the coronavirus pandemic

There is a link between female leaders and successful responses to COVID-19.

Why your employees don’t speak up

Research: Half of workers don’t feel comfortable to express concerns - and it’s usually because...