ITV’s (LON:ITV) advertising revenue crumbled in April as advertising demand fell by 42% due to the COVID-19 pandemic.
The update on the impact of COVID-19 on April’s trading was included in ITV’s first quarter trading state which revealed a 7% drop in total external revenue in the three months to 31st March.
Broadcast revenue was up 2% during the quarter as ITV studios revenue fell by 11% as COVID-19 restrictions started to take hold.
However, as ITV moved into April, when lockdowns were in full swing, the ITV Studios business saw most work grind to halt which is likely to have an impact on earnings for ITV’s Q2.
In addition to a pause in the Studio’s business, advertising revenue will be materially impacted due to advertiser uncertainty surrounding coronavirus.
The reduction in demand was felt across most of ITV’s advertising categories although the company did report some positives through the COVID-19 crisis.
Interaction with ITV’s library of content increased and subscription activity in Britbox also increased.
Simulcast viewing jumped 112% in the first quarter as overly online viewing rose by 77%.
ITV said they were working with advertisers on new and innovative marketing solutions but didn’t give any guidance or outlook for Q2 due to the ongoing distraction associated with coronavirus.
Carolyn McCall, ITV Chief Executive, said:
“ITV has taken swift and decisive action to manage and mitigate the impact of COVID-19, by focusing on our people and their safety, and by continuing to reduce costs and tightly manage our cashflow and liquidity. We are also ensuring that we continue to inform and entertain our viewers and stay close to our advertisers. Everyone at ITV has responded extremely well to the challenges we are facing.”
“We are now very focused on emerging from this crisis in a strong position, continuing to offer advertisers effective marketing opportunities and making preparations to restart productions safely.”
Shares in ITV (LON:ITV) rose 4.7% in early trade on Wednesday.
