ITV signals cost-cutting in wake of Brexit

ITV will slash £25 million in costs next year as a direct result of Britain's decision to quit the European Union, it emerged yesterday.

Adam Crozier: strategy is working and right for ITV. Picture: contributed

The broadcaster said it had put in place a “robust plan” to meet the challenges Brexit is set to pose.

Chief executive Adam Crozier told investors: “Against a backdrop of wider economic uncertainty following the EU referendum we have put in place a robust plan to allow us to meet the opportunities and challenges ahead. As part of this we are targeting a £25m reduction in overheads for 2017.”

ITV made the announcement alongside results for the first half of the year, which saw total external revenue rise 11 per cent to £1.5 billion.

Pre-tax profits increased 9 per cent to £425 million but the firm warned that advertising revenue was set to dip 1 per cent in the nine months to the end of September.

Crozier added: “Our strategy of strengthening and rebalancing the business is clearly working and remains the right one for ITV. We have a strong balance sheet and the capacity to continue to invest behind our strategy, while delivering returns to our shareholders.”

The board has proposed an interim dividend of 2.4p, up 26 per cent on a year earlier.

ITV said that its studios division was on track to deliver double-digit total revenue and adjusted underlying earnings growth over the full year, primarily driven by acquisitions already undertaken. It is confident of delivering continued double-digit revenue growth in online, pay and interactive.