ITV has announced a £100 million share buyback, representing an early return of capital from the anticipated £950m net cash return from the sale of its Media & Entertainment business to Sky.
The plan came amid solid interim results for the six months ended 30 June, with total group revenue up 2% to £1.9 billion and statutory profit before tax increasing 16% to £78 million, while maintaining full-year guidance.
Media & Entertainment saw a 37% rise in adjusted EBITA to £48m, driven by strong digital revenue growth and advertising demand from the World Cup.
ITV Studios revenue grew 2% to £912m, though adjusted EBITA declined 9% to £97m due to production slate phasing.
The interim dividend remains unchanged at 1.7p per share, totaling approximately £60 million.
Carolyn McCall, ITV chief executive, said: “ITV delivered a solid H1 performance and we remain on track to deliver our full-year guidance, including good revenue growth in ITV Studios and strong, profitable digital revenue growth within Media & Entertainment.
“ITV Studios’ H1 performance reflects the year-on-year phasing of our production slate, with revenue, profit, and margin weighted as usual towards the second half of the year as previously guided. This reflects a significant volume of large deliveries and high-margin licensing deals in H2, over which we have good visibility.
“In M&E, ITVX continues to perform strongly, delivering double-digit growth in both viewing and digital advertising revenues during the period, while Total Advertising Revenue (TAR) grew strongly in the first half and into July, reflecting a very successful Men’s Football World Cup and continued strong demand from advertisers.
“The recently announced sale of M&E to Sky represents a substantial milestone for ITV. This transaction will unlock significant value for shareholders, with a net cash return of around £950 million, excluding any contingent consideration, and continued ownership of an attractive, growing global content business in ITV Studios.
“Underpinned by its world class talent, global scale and unique IP library, ITV Studios is well positioned to deliver above-market profitable organic revenue growth at industry leading margins, strong cash generation, attractive returns to shareholders and an investment grade balance sheet.
“Macro-economic headwinds remain, but we are focused on the performance of both businesses, with continued momentum, disciplined execution of our strategic priorities and a strong second half delivery schedule in ITV Studios.
“Reflecting our commitment to attractive shareholder returns, the Board has declared an interim dividend of 1.7p, a total of around £60 million, unchanged on prior year. In addition, we are today announcing a £100 million share buyback.
“This represents an early return of part of the previously announced £950 million net cash return expected on completion of the sale of M&E.”
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