Delivering growth through Transformation
External revenues up 3% to £2,196m (2011: £2,140m), with growth in all areas of the business
Total non-NAR revenues up £114m, 12%, to £1,036m (2011: £922m)
ITV Studios revenues up £100m, 16%, to £712m (2011: £612m)
ITV Family NAR flat, outperforming the TV advertising market
Online, Pay & Interactive revenues up 26% to £102m
Delivered £30m cost savings
EBITA before exceptional items up 13% to £520m (2011: £462m)
- ITV Studios EBITA up 29% to £107m (2011: £83m)
- Broadcast and Online EBITA up 9% to £413m (2011: £379m)
Adjusted PBT up 17% to £464m (2011: £398m)
Adjusted EPS up 16% to 9.2p (2011: 7.9p)
Positive net cash of £206m (2011: £45m)
Board has proposed a final dividend of 1.8p (2011: 1.2p) giving a full year dividend of 2.6p (2011: 1.6p), and a special dividend of 4.0p, worth £156m
Positive start to 2013 with Q1 advertising expected to be up 5% and continued strong demand for ITV Studios content.
Adam Crozier, ITV Chief Executive, said:
"We're now almost three years into our Transformation Plan and our strong performance is delivering growth right across ITV, enabling us to build a stronger and more balanced business.
"In 2012 we achieved double digit earnings growth for the third year running, in a broadly flat advertising market. We now have non-advertising revenues of more than £1bn, an increase of £114m or 12% year on year, fuelled by a strong performance in ITV Studios and our Online, Pay & Interactive business.
"Our Broadcast & Online business is robust and growing, with profits up 9% to £413m, and our audience is in high demand from advertisers. Although ITV Family Share of Viewing fell by 3% due to the unprecedented number of major one-off events, we do not expect it to impact our ad performance in 2013 and the advertising deals we have secured support this view.
"We're investing in Online, Pay & Interactive, which are now a material and rapidly growing part of ITV with revenues increasing by 26% to £102m - and more than doubling over the last three years. We're positioning ourselves to take advantage of the opportunities arising from the increasing number of platforms needing high quality content and from changes in consumer behavior, in particular the surge in mobile viewing.
"A key part of the Transformation Plan is building an international content business. ITV Studios achieved strong organic growth both in the UK and overseas, with revenues up by £100m to £712m, driven by our ongoing investment in creative talent and developing new programmes. We're now building on our healthy creative pipeline with selective acquisitions in key and emerging creative markets.
"We have an increasingly robust balance sheet and strong cash flows which can support the investments required to deliver our growth strategy and future shareholder returns. Our continued focus on cash and costs has led to net cash of more than £200m at the year end.
"The Board has proposed a final dividend of 1.8p, bringing the total for 2012 to 2.6p, as well as a special dividend worth £156m, balancing the need for continued investment with financial discipline.
"Over the last three years we have consistently grown our revenues, delivered double digit earnings growth and converted that earnings growth to cash to strengthen our financial position. During that time we have increased our profits by 157% to £520m, our adjusted EPS by 411% to 9.2p and we have improved our cash position by over £800m. This encouraging progress has been driven by a strong performance in Broadcast, increasing strength in Online, Pay & Interactive, and a real step change in the creative capability and output of our ITV Studios content business. While there is still much to do this is clear evidence that ITV is transforming into a more robust, efficient and balanced company."
