Reality show Love Island and the World Cup helped boost ITV’s profits as the broadcaster confirmed plans to launch a new streaming service.
Chief executive Carolyn McCall said subscriptions to its current ITV Hub streaming offering were up sixfold this summer, partly because it allows customers to watch hit programmes like Love Island abroad.
Recent reports have suggested that ITV is in discussions with the BBC and Channel 4 to take on Netflix and Amazon Prime.
Ms McCall did not say on Wednesday whether ITV was partnering with any other companies on the new service.
The company reported that profits rose to £265m in the six months to the end of June, up from £259m in the previous half-year, while revenues jumped 8 per cent to £1.5bn, partly thanks to a 2 per cent increase in advertising revenues which included 48 per cent growth online.
Despite the rise, ITV also said it would cut £40m in costs by 2021, with £15m of those coming next year, as it continues to battle against a tough advertising market. Ms McCall said it was “too early” to say whether job cuts would be necessary as part of the plan.
The broadcaster will also invest £60m over the next three years, with part of that budget dedicated to ramping up its production of programmes.
Ms McCall said viewers’ appetite for quality programming was stronger than ever, with demand set to grow by 5 per cent a year over the medium term.
“ITV is well placed to take advantage of this opportunity and our strategy refresh will enable us to drive profit from three separate sources – advertisers, broadcasters/platforms and consumers,” she said.
“ITV will be more than TV – it will be a structurally sound integrated producer broadcaster where we aim to maintain total viewing and increase total advertising revenue; it will be a growing and profitable content business, which drives returns; and it will create value by developing and nurturing strong direct consumer relationships, where people want to spend money on a range of content and experiences with a really trusted brand.”
