ITV (LON:ITV) earnings fell over the course of 2017, after weakness in demand from advertisers weighed heavily on profits.
Underlying earnings for the year to December 2017 fell 5 percent to £842 million, with net advertising revenue dropping to £1.6 billion from £1.7 billion the year before.
Overall the group’s total revenue rose 4 percent to £3.66 billion as online advertising partially offset a weakness in demand for TV advertising.
Total revenue, encompassing both online and broadcast, fell 3 percent but online, pay and interactive revenue rose 7 percent to £248 million, driven by strong online performance. ITV Studios, reported a 13 percent rise in revenue to £1.5 billion from £1.4 billion.
Carolyn McCall, ITV’s Chief Executive, said: “There is no doubt that ITV’s operational performance in 2017 in a challenging environment was strong.
“ITV delivered a great viewing performance on-screen and online and double-digit revenue growth in video on demand advertising and ITV Studios. This gives us a solid foundation to build on for the next phase of ITV’s development.
“Reflecting our confidence in the business, and the outlook for 2018, the Board is proposing a full year dividend of 7.8p, up 8 percent”.
Shares in ITV fell on the news, and are currently trading down 6.90 percent at 161.25 (0838GMT).
