www.broadcastnow.co.uk
28 February 2014
ANALYSIS
INTERVIEW
BEHIND THE SCENES
Page 25
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Where are the transgender roles?
Arrow Media: ready for lift-off
Counting down to World War I
ITV indie deals in spotlight Broadcaster reveals £300m ‘maximum consideration’ it could pay following acquisitions spree BY JAKE KANTER
ITV AT A GLANCE £435m Pre-tax profits rise 30% £2.75bn Total revenue climbs 8% £857m ITVS turnover grows by a fifth £118m Digital and pay revenues rise 26% 44% ITV’s non-ad income £1.01bn Programme budget up £20m £620m EBITA grows by £107m Source: ITV
Producer
Payment Maximum
Initial
Expected
The Garden
£18m
£35m
£46m
Payout period 2018
High Noon
£16m
£34m
£61m
2015-21
Thinkfactory
£19m
£31m
£61m
2017-19
Big Talk
£13m
£30m
£30m
2015-18
24 Hours In A&E: ITV could have to shell out £46m for producer The Garden
CATCH-UP ITV’S PLANS TO CAPITALISE ON GROWTH Adam Crozier claimed that catch-up now accounts for 11% of viewing across the British TV industry. He was speaking as ITV revealed that long-form video requests on ITV Player grew by 16% year on year in 2013, with online, pay and interactive activity revenues increasing from £102m to £118m. ITV plans to capitalise on its increased catch-up viewing by of Graham Norton’s So Television, Finnish indie Tarinatalo and Norway’s Mediacircus, but the broadcaster said the most
introducing advertising to its Sky and Virgin Media VoD services later this year. The launch of programming rentals on ITV Player is also delivering returns, Crozier said, but the company is experiencing more success with subscriptions. “We expect to again deliver double-digit revenue growth in online, pay and interactive in 2014,” he added. it will have to pay for these companies is £95m. Any increased outlay would be more than offset by the returns delivered by the production companies. In 2013 alone, the partners helped grow ITV Studios’ top line
by £97m, with the production division delivering a total revenue increase of 20% to £857m. The broadcaster pointed to success in the US, where shows including Hell’s Kitchen and High Noon’s Cake Boss bolstered international production turnover by 56% to £266m. UK production revenues increased from £408m to £456m year on year. Crozier heralded the US performance, reiterating that ITVS is now one of the top-five independent production outfits in the country. He said US drama will be a big focus over the next 18 months. Crozier also said ITV’s buying spree could continue. He said ITV would purchase more production outfits if the right opportunities in the right territories presented themselves, irrespective of the size of the deal. A bid for Channel 5 is not on the agenda, however.
£4.99
ITV could end up paying nearly £300m for the indies it has bought over the past two years if its new production partners hit top-end growth targets. The maximum potential bill for the eight production firms the broadcaster acquired between July 2012 and the end of 2013 was disclosed in the company’s annual results on Wednesday, which chief executive Adam Crozier said provided “clear and consistent evidence” that his transformation plan is working. ITV is prepared to pay a “maximum consideration” of £46m for The Garden by 2018, following its initial outlay of £18m for the company last year. Big Talk could fetch a maximum of £30m over the same timeframe after ITV made an initial cash payment of £13m for the Rev indie in July 2013. In the US, High Noon Entertainment and Thinkfactory Media could both end up costing ITV £61m. In each case, those payments would be based on stretching annual revenue growth targets of 20-30% over the coming years. The maximum potential bill for the 2012-13 acquisitions, excluding ITV’s most recent purchase of Teen Wolf indie DiGa Vision, is £293m. There was less granular information on ITV’s 2012 acquisitions