Savings and record production earnings helped ITV to post a 19% jump in annual profits, though it admitted it faces a challenge repeating the performance in the current year.

Pre-tax profits rose to £472 million for 2024 and total advertising revenue (TAR) was 2% higher at £1.82 billion.

But the group said TAR is expected to remain largely flat in the four months to the end of April. Ad revenues will also be affected in June and July as it comes up against tough comparisons from a year earlier, when ad sales were boosted by the Euros football tournament.

ITV said it took £60 million of costs of the business last year, £10m more than expected, and is looking to make another £30m in savings over 2025.

Its ITV Studios production arm saw underlying earnings rise 5% to a record £299 million, despite revenues slumping 6% to £2.04 billion, partly because of the 2023 US actors and writers strikes and softer demand from free-to-air broadcasters.

ITVX continued to perform strongly: digital viewing up 12% and digital advertising revenue up 15% in 2024, delivering attractive returns. By the end of 2025, the company will have recouped the cumulative investment in ITVX, much earlier than anticipated.

Carolyn McCall, chief executive, said: “Our significant competitive advantages give us confidence that we will continue to deliver good growth in both ITV Studios and digital revenues, underpinned by the powerful reach and strong cash generation of Broadcast. 

“And we are becoming a more resilient business with content production and digital now accounting for close to two thirds of our revenue. Our ongoing transformation ensures we are an adaptable and agile company, well positioned to deliver good profitable growth, strong cash generation and attractive returns to shareholders.”

The board has proposed a final dividend of 3.3p (2023: 3.3p), giving an ordinary dividend of 5.0p per share for the full year 2024 (2023: 5.0p), a total of £190m.

ITV has commissioned an 11^th series of Celebrity Catchphrase from STV Studios Entertainment.