ITV has reported record profits in its production arm ITV Studios which helped the company more than double its profit before tax in 2024 to £521m.

This compared to a pre-tax profit of £193m in 2023, despite ITV posting a 3% fall in its total group revenue last year, to £4.1bn.

ITV, posting its figures for the 12 months to 31 December 2024, said the record profits in ITV Studios were backed up by higher profits and increased margin in its media and entertainment (M&E) division, as well as £60m of efficiencies delivered across the group, as it posted an 11% rise in adjusted EBITA to £542m.

Revenue in the company’s M&E division, which incorporates its streaming service ITVX, was up 1% to £2.1bn as adjusted EBITA climbed by 22% to £250m for the year.

The group also said it is expecting to deliver “good revenue growth” in ITV Studios in 2025, with revenue and profit weighted to the second half of the year, despite a slightly lower margin than it achieved in 2024. This is forecast to be in a target range of 13 to 15%.

“ITV Studios has delivered record profits this year, despite the one-off impact of the writers and actors strike and a softer demand from free-to-air broadcasters, which reflects the strength, scale, diversification and creativity of ITV Studios production companies across the world,” said ITV’s chief executive, Carolyn McCall.

“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.

“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.”

ITV’s share price rose by 6% this morning after the FTSE 250 company posted its results, to 73.9p, as the group also announced an ordinary dividend of 5p per share for 2024.

Head of markets at interactive investor, Richard Hunter, commented that while “investors remain skittish on prospects”, ITV’s initial share price reaction has been “noticeably positive”.

He added: “ITV has flitted in and out of the premier index over recent times, and although the shares have risen by 16% over the last year, as compared to a gain of 3.4% for the wider FTSE 250, over the last two years a decline of 20% has been more telling.

“The market consensus of the shares as a hold reflects some caution on prospects given the apparently limitless spending power of some of the group’s competitors and the broader and more obvious concerns around general advertising revenues, despite ITV’s own strategic progress.”

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