The ITV network has suffered a 3% drop in its audience share and a 6% drop on its main channel after a string of factual and entertainment flops but reported a strong performance in advertising revenues.
ITV chief executive Adam Crozier said improving the network’s share of viewing was a “key focus” for the broadcaster hit by strike action on Thursday in a dispute over pay ahead of its annual general meeting with shareholders.
The company’s shares were down more than 3% in early trading.
ITV said net advertising revenues rose 12% to £754m in the first three months of the year, adding that after stripping out the benefit of acquisitions, its studios business also returned to organic growth.
But the broadcaster, which will lose its rights to the big-rating Uefa Champions League at the beginning of next season, faces a tough challenge to turn around its declining audiences with its most popular drama, Downton Abbey, also coming to an end after the next series.
ITV director of television Peter Fincham may look to Jeremy Clarkson to turn around its fortunes after he met with the presenter and the former Top Gear team, including James May, Richard Hammond and executive producer Andy Wilman last week.
But it remains to be seen where the former Top Gear stars will end up after Clarkson was axed following his assault on a producer, with US video-on-demand Netflix also in the running.
Britain’s Got Talent continues to perform well but Simon Cowell’s other Saturday night talent show, The X Factor, is in transition after years of declining ratings with a new look show to come in the autumn.
ITV has also suffered a number of factual flops, including Julia Bradbury’s The Wonder of Britain, and has struggled to come up with new weekend entertainment shows with Get Your Act Together, Planet’s Got Talent and Harry Hill’s reboot of Stars in Their Eyes all struggling at the start of the year.
Its new Wednesday night lineup combining Amanda Holden’s Give a Pet a Home, puppet show Newzoids and sitcom The Delivery Man is currently struggling to attract an audience.
But ITV will see an audience boost in the second half of this year with live rights to the rugby world cup.
ITV said its key measure of net advertising revenue was expected to rise by about 5% in the first half of the year, although ad revenues across the ITV family of channels were down by 5% in April and forecast to fall 5% and up to 7% in May and June respectively due to tough comparisons after last year’s World Cup.
Adam Crozier, chief executive of ITV, said: “We’ve had a strong start to the year with further growth across all parts of the business.”
He added: “ITV family share of viewing (SOV) was down 3% in the first four months and improving SOV remains a key focus for the year.”
The main ITV channel had a 14.7% share in the first four months of 2015, down from 15.6% in the same period in 2015.
The ITV family of channels, including ITV2, ITV3, ITV4 as well as CITV, ITV Encore, ITVBe and its various other offshoots, fell from 21.6% to 20.9% over the same period.
Crozier said: “Our digital channels are growing audience share, up 3% overall year on year, and we are firmly focused on the main channel.”
The group has been encouraged by the recent performance of prime-time programmes such as Britain’s Got Talent, Ninja Warrior and Vera and said dramas, including Safe House, Home Fires and Code Of A Killer had been “well received”.
ITV highlighted a number of high-profile dramas this year including Thunderbirds Are Go, The Good Witch, Texas Rising, Aquarius, Raised By Wolves and Jekyll & Hyde.
ITV saw pre-tax profits rise 23% to £712m last year after net advertising revenues lifted 6% to £1.63bn.
The group has been reshaping its business to minimise exposure to volatility in advertising markets by boosting spending on original content, buying up production companies to help produce programmes it can sell around the globe.
ITV snapped up Talpa, the Dutch production company behind The Voice, in April in a deal that could cost up to €1.1bn (£781m).
