Annual Report and Accounts

Making What Maers

ITV plc Annual Report & Accounts 2024

CONNECT

Our purpose is Making What Matters, entertaining and connecting with millions of people in the UK and globally, reflecting and shaping culture and building brands with brilliant content and creativity.

Our 2026 vision is to be a leader in UK advertiser funded streaming and an expanding global force in content.

Our strategy ensures that ITV is best placed to capitalise on the opportunities presented by the rapidly changing viewing, content production and advertising environments.

I'M A CELEBRITY...GET ME OUT OF HERE! had its 24th series on ITV in 2024. It was the biggest entertainment show of the year.

FURTHER READING

Read our Pay Gap Report at: itvplc.com/investors/ governance

Online

We maintain a corporate website containing our financial results and a wide range of information of interest to all stakeholders, including institutional and private investors:www.itvplc.com

Strategic Report

The Strategic Report is prepared in line with the relevant provisions of the Companies Act 2006 and the 2018 Corporate Governance Code and the Company has had regard to the guidance issued by the Financial Reporting Council. It is intended to provide shareholders and other stakeholders with a better understanding of the Company, its position in the markets in which it operates, and its prospects.

Forward-looking statements

This Annual Report contains certain statements that are or may be forward looking statements. Words such as "targets", "expects", "aim", "anticipate", "intend", or the negative of these terms and other similar expressions of future performance or results, and their negatives, are intended to identify such forward-looking statements. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting ITV. Although ITV believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. By their nature, forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. They are not historical facts, nor are they guarantees of future performance; actual results may differ materially from those expressed or implied by these forward-looking statements. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward looking statements. Such factors include, but are not limited to, those discussed under our Risks and Uncertainties on pages 49 to 53.

Forward-looking statements speak only as of the date they are made and, except as required by applicable law or regulation, ITV undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Nothing in this report should be construed as a profit forecast.

An introduction to ITV and its business model

Who we are

ITV is a vertically integrated producer broadcaster and streamer, consisting of ITV Studios and Media & Entertainment (M&E).

Our divisions

ITV TOTAL REVENUE1

ITV GROUP ADJUSTED EBITA3

• 1. A full reconciliation between our adjusted and statutory numbers is included in our APMs section

• 2. Includes £556 million of digital revenues (2023: £498 million). 2023 digital revenue was reported as £490 million and has been restated to include previously omitted digital advertising revenue streams. Refer to the KPIs section for further details

• 3. Group Adjusted EBITA includes £(7) million related to unrealised profit in stock adjustments (2023: £(2) million)

• 4. 2024 ITV Studios EBITA includes £13 million impact of Audio-Visual Expenditure Credits, refer to the Finance Review for further details

Our strategic assets and competitive advantages

ITV's business model is based on a unique set of strategic assets and competitive advantages, enabling us to grow our diversified revenue streams and create value for our shareholders.

By developing, owning, managing and distributing the rights to content, we can maximise the value of our programme brands across ITV Studios, Streaming and Broadcast. This ensures ITV is a more diversified business and enables us to drive value from different revenue models.

• • Integrated producer, broadcaster and streamer model creates valuable synergies

• • Strong, trusted brand, products and culture

• • A high-performing, agile, creative and diverse workforce

• • Industry-leading creative talent that creates and produces content across a range of genres

• • Operates in the growing segments of the content market - premium scripted and unscripted content

• • Broad global customer base with major networks, streamers and broadcasters

• • Creates and owns the rights to world-class content

Using our strategic assets and competitive advantages we aim to grow…

Our diversified revenue streams

ITV STUDIOS

Original production

We create and produce original scripted and unscripted content commissions for a diverse customer base of global streamers, major networks, as well as local free-to-air and pay TV broadcasters and operators across our production bases.

Formats

We create some of the world's most successful unscripted formats, which we license globally to maximise the value from our programme rights.

Distribution

We own the rights to a significant catalogue of programmes that we license to broadcasters and streamers internationally through our global distribution network.

Digital

We monetise our ITV Studios brands and extensive catalogue of 95,000+ hours via YouTube channels, social media, gaming and streaming platforms through our digital studios label: Zoo 55.

• • Trusted brand with a strong British content offering

• • Unique commercial proposition

• • Strong commercial relationships with advertisers and partners

• • Owns Planet V, which is the second largest programmatic targeted addressable platform in the UK

• • Strong data capabilities with one of the largest first-party datasets in the UK

MEDIA & ENTERTAINMENT

Advertising

ITVX and our free-to-air linear TV channels drive significant digital and linear advertising revenues, due to our ability to deliver mass audiences and targeted advertising at scale.

Advertising partnerships

Through our partnership with YouTube, we work alongside ITV Studios' Zoo 55 label to sell the advertising around all our content on YouTube.

Commercial and creative partnerships

Using the power of our brands, we help advertisers engage with audiences in different ways. We provide unique and innovative commercial and creative partnerships across ITVX and our free-to-air linear TV channels. These include sponsorship, product placement and advertiser-funded programming.

Subscription, competitions and third-party revenues

We generate streaming subscription revenue, monetise our consumer interactions through competitions, and receive third-party revenue from platforms for carrying our channels.

Supported by our risk management framework

ITV operates in an increasingly complex business environment. Thus, our risk management framework provides the business with the tools to identify, assess, manage and continually review our risks.

Management and the Board can adapt the strategy to ensure we are striking the right balance between risk-taking and risk mitigation, and that any underlying risks in the strategy are being appropriately managed, thereby enabling the successful delivery of the strategy.

Our business model enables us to create value for all our key stakeholders. This includes our customers, viewers and subscribers, partners, citizens, shareholders, debt providers and analysts, legislators and regulators, as well as our colleagues, programme participants and everyone we work with

See our Stakeholder Engagement section for further details on ITV's key stakeholders and how we engage with them

Investor proposition

Reasons to

INVEST

ITV is delivering profitable growth for shareholders through:

DRIVING SIGNIFICANT BENEFITS 1 FROM OUR UNIQUE POSITION:

• • As the UK's largest commercial broadcaster and BVOD* streamer, and as a scaled global production business

*Broadcaster video on demand

OPTIMISING BROADCAST AS WE CONTINUE TO ATTRACT MASS LINEAR TV AUDIENCES: 4 • Which remain highly valuable to advertisers as they grow their businesses, and drives cash generation for the Group

2 • ITV Studios is on track to deliver 5% CAGR organic 5 • As we continue to rebalance the business

GROWING OUR LEADING, SCALED AND DIVERSIFIED GLOBAL STUDIOS BUSINESS:

revenue growth between 2021 and 2026, growing faster than the market

• • ITV will deliver a margin of 13-15%

INCREASING PROFIT OVER THE MEDIUM TERM:

towards the growth drivers of ITV Studios and advertiser-funded streaming, and deliver further efficiencies

DRIVING STRONG MOMENTUM IN 3 STREAMING:

• • Delivering significant growth in digital viewing and 6 • digital advertising, providing data-driven targeted advertising at scale through Planet V (ITV's addressable advertising platform) in a trusted, brand-safe environment

  ROBUST BALANCE SHEET, GOOD CASH GENERATION AND DISCIPLINED CAPITAL ALLOCATION FRAMEWORK:

  Reprofiled debt, pension scheme in surplus, and operating within investment grade metrics, provide a strong platform for future growth and attractive returns to shareholders

• • On track to deliver at least £750 million of digital revenue by the end of 2026

Refer to Our More than TV Strategy on page 8

KPIs on page 12

Operating and Financial Performance Review on page 16

Finance Review on page 40, for further details on the above

• • Sustaining a 5.0p ordinary dividend that can grow over time; £198 million of £235 million share buyback completed by 31 December 2024

We opened the year with Mr Bates vs The Post Office, arguably the most impactful TV drama ever produced, provoking public outrage and immediate and welcome government intervention and changes to law. Mr Bates generated the most enormous pride inside the organisation, showing vividly as it did, the impact and value ITV has as a Public Service Broadcaster (PSB).

For 70 years ITV has entertained, influenced and shaped Britain, and Mr Bates was a classic example of the Company at its best. Our pride is heightened by the knowledge that we do what we do without taking money from the public purse. Since it began in 1955, ITV has used only the talent of its people and its commercial wit to make its way in the world. And that continues today.

The ability to adapt is a key factor in long-term success. The media industry landscape has changed dramatically over recent years and we have had to keep pace. Last year, in addition to broadcasting award-winning programmes like Mr Bates, we invested further in our Studios division, which now comprises over 60 production labels around the world, and also in ITVX, our high-performing streaming business, which enjoyed a very successful second year. These investments are strategically vital, and were made possible by the delivery at the same time of a complex, internal efficiency and transformation programme. This programme was carefully and thoughtfully managed by our leadership team and the Board acknowledges their efforts over a prolonged and intense period. Many colleagues were impacted by the changes called for, and we thank everyone involved for their tolerance, understanding and support.

In a challenging macro environment, total external revenues for 2024 were down 4%. Group adjusted EBITA for the year, however, grew by 11% with increases in profitability seen in both Studios and Media & Entertainment. Well over half our profits now come from Studios and our digital business. Our balance sheet remains strong and we

Such a busy and consequential year would not have been possible

generated £325 million of free cash in the year. without the leadership We have now completed the majority of our £235 million share buyback and I know that our shareholders value our dividend. The Board has proposed a final dividend of 3.3p taking the full year value of the dividend to 5.0p, in line with 2023.

The Media Act received Royal Assent in the last days of the previous Parliament, and we were very pleased that it did. This is a key piece of legislation that helps modernise the regulation of the media industry and offers PSBs like ITV a more level playing field on which to compete. We applied to renew our PSB Licence in 2023 and after the passing of the Act, Ofcom renewed the PSB Licence, committing us to ten more years as a PSB. We now look to Ofcom to provide robust implementation of the Act's provisions.

of Carolyn and her senior team. I would like to thank them for their extraordinary efforts in challenging circumstances. And I must also thank everyone more broadly at ITV. Great businesses are built by great people and we are fortunate to have so many we can count on. So thank you. Your passion and commitment make all the difference…happy 70th.

Andrew Cosslett Chair of the Board

Market review

The markets in which we operate are dynamic, highly competitive, and continue to evolve at pace. High-quality content remains essential for all platforms to attract and engage viewers at scale. Ongoing shifts in viewing habits, and the constantly changing advertising landscape, present both opportunities and challenges for ITV.

TREND 1:

Global demand for content

The global content market is large and attractive with all platforms needing a mix of content to succeed in a very competitive market. While overall market growth has slowed compared to historical levels, we expect to see growth in the key segments in which ITV Studios operates, including content licensing (especially digital and FAST1 channels), as well as continued demand from streaming platforms for unscripted content and premium scripted content.

2024 was impacted by the 2023 US writers' and actors' strikes, which delayed productions from 2024 to 2025, along with softer demand from free-to-air broadcasters (FTA) in Europe.

The global content market grew by 3% in 2024 with spend on sports rights from global streaming platforms driving a significant proportion of the growth. Demand for acquired, or library, content also increased. Original commissioning spend from linear TV operators declined, which impacted ITV's revenue performance in 2024.

1. FAST - Free ad-supported streaming TV

Size of global content market in 2024

$233 billion

2023: $227 billion (Source: Ampere Analysis: Feb 2025 - excludes spend from film studios)

How we are responding

Delivery of ITV Studios' strategic priorities will ensure ITV gains market share over the medium term. By expanding our scripted and unscripted business, and further diversifying our customer base, ITV can capture the growth in content spend in key segments in which we operate, as explained above.

Growing our global formats ensures we have a range of high-value formats which we can monetise internationally through production, format sales and licensing. Our distribution business and digital studios, Zoo 55, can also capitalise on the value of our extensive catalogue of formats, scripted content and ITV Studios IP. This contributes to our higher overall ITV Studios margin relative to our industry peers.

As a vertically integrated producer, broadcaster and streamer, ITV Studios also benefits from demand for its content from ITV's FTA linear TV channels and our free advertiser-funded streaming service, ITVX, providing M&E with a strong and secure content supply.

TREND 2:

Fragmentation in viewing and changing habits

While the average viewing time per person per day to broadcast, streaming and video-sharing platforms remains stable at around 4 hours 16 mins per day, the way viewers consume content has evolved rapidly. Traditional linear TV viewing has experienced a decline over the last few years, with this shift being offset by growth in digital platforms. This reflects an increasingly fragmented competitive landscape, which offers viewers unprecedented choice. From PSBs (e.g. BBC, ITV) and global streaming platforms (e.g. Netflix, Disney+) to video-sharing platforms (e.g. YouTube, TikTok), the breadth of available content and viewing options gives audiences an unparalleled level of choice and flexibility to curate their own personalised viewing experience across platforms, anytime, anywhere.

Average viewing time per person per day

4 hours 16 mins

2023: 4 hours 17 mins (Source: BARB, 16+)

How we are responding

As the largest commercial broadcaster and BVOD streamer in the UK, we offer viewers the flexibility to watch content whenever and wherever, while maximising commercial value.

ITVX has over 22,000 hours of free content (up from 11,000 at launch), which has led to significant growth year-on-year in monthly active users of our streaming service, up 14% and streaming hours, up 12% year-on-year.

Live viewing, whether via ITVX or on linear TV channels, remains a major focus: ITV is home to more commercial audiences of scale than any other broadcaster or streaming platform in the UK.

In 2025, we will invest around £1.250 billion in high-quality, trusted content across a wide range of genres, including large family entertainment shows, sport, drama and news, which will drive both video on demand and live viewing on ITVX, and mass audiences on linear TV channels.

TREND 3:

The UK advertising market

The UK advertising market was worth c.£41 billion in 2024, growing at 11% year-on-year (compared to +6% in 2023 vs. +8% in 2022). This was a compound annual growth rate (CAGR) of 8% over the past decade. This growth has largely been driven by online (digital) advertising, which was up around 15% in 2024 (following +12% growth in 2023) and a 16% CAGR over the last ten years.

Online is the largest category of advertising spend, being 77% of the market, followed by TV advertising which is 12% of the market. (Source: Q3 2024 AA WARC report).

Overall growth varies by advertising medium, with TV impacted, in part, by the increased macroeconomic uncertainty in Q4 2024, and lower business confidence following the UK Budget.

Market forecasts for 2025 (e.g. AA WARC, media agencies) expect growth in UK advertising, driven by online advertising.

Global streaming platforms, such as Netflix, Amazon and Disney+ have recently introduced ad-supported streaming tiers, increasing competition within the TV advertising market.

2024 UK advertising market

£41 billion

2023: £36 billion (Source: AA WARC Q3 2024)

How we are responding

ITV offers our advertising clients: mass reach, targeted advertising at scale, and commercial and creative partnerships in a brand-safe environment. This remains a considerable market differentiator, along with our deep, established relationships with advertisers and agencies - something which no other competitor can offer.

ITVX delivers the scale and breadth of digital audiences, which provides inventory for Planet V, our addressable advertising platform, to create and deliver targeted advertising at scale. This underpins our ability to compete for digital video budgets and gain share in this growing addressable advertising market, illustrated by our 15% growth in digital advertising revenue in 2024.

ITV will also sell advertising around ITV's content on YouTube (through Zoo 55), creating a new opportunity to grow our share of digital advertising revenues.

ITV's FTA linear TV channels offer unique scale and reach, and it remains a cost-efficient and important part of marketing campaigns.

Link to risk: 1

Link to risk: 3

Link to risk: 2

Key

Expand Studios globally

Statement and to the Operating and Financial Performance Review for further detail

ITV delivered double-digit earnings growth across the Group, with record profits in Studios, and an increase in the profits and margin of M&E. ITV Studios performed well despite the expected one-off impact of US strikes and softer demand from free-to-air broadcasters, which reflects the scale, quality, diversification and resilience of the business.

ITVX continued to drive strong growth in digital viewing and revenue and is delivering attractive returns. ITVX viewing has grown faster than all the other major video-on-demand services and streaming platforms since its launch. Broadcast has maintained its strength in delivering mass reach and continued strong cash generation.

Creatively, we have had a standout year producing and distributing critically acclaimed content globally that continues to set us apart in the market, and 2024 has demonstrated that the programmes we produce and distribute can change attitudes, outcomes, and even the law.

Financial Highlights

ITV's transformation has made it more agile and resilient, which have been key to its success over the years, and this is evident in its 2024 financial performance.

Group adjusted EBITA* grew 11% to £542 million following our year of peak net investment in 2023 and adjusted EPS was up 23% at 9.6p.

Total ITV Group revenue was down 3% and total external revenue declined by 4%, with 2% growth in total advertising revenue offset by the expected decline in ITV Studios revenue. Within M&E, ITVX continued to drive strong growth in digital viewing, which was up 12%, and in digital advertising revenue, which grew 15% year-on-year. Digital advertising now makes up 26% of total advertising revenues.

* Includes £13 million of Audio Visual Expenditure Credits, refer to APMs for further details

Our statutory results benefited from the profit on the sale of BritBox International in March 2024, with statutory profit before tax up 170% to £521 million and statutory EPS increasing by 100% to 10.4p.

Cash generation was strong with 83% profit to cash conversion and £325 million of free cash flow. ITV has a robust balance sheet with net debt of £431 million, and net debt to adjusted EBITDA leverage of 0.7x at 31 December 2024.

In line with ITV's dividend policy, 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 payment of around £190 million. Since 2018, we have returned over £1.4 billion to shareholders, which includes £198 million of our £235 million share buyback programme as at 31 December 2024.

Our Progress in Delivering Our Purpose, Vision and More Than TV Strategy

Our purpose is Making What Matters, entertaining and connecting with millions of people in the UK and globally, reflecting and shaping culture and building brands, with brilliant content and creativity.

We announced Phase Two of our More Than TV strategy three years ago with the vision that by 2026, ITV will be a leader in UK advertiser-funded streaming, and an expanding global force in content.

To deliver our vision and strategy, we are focused on three pillars:

• • Expand our UK and global production business

• • Supercharge our Streaming business

• • Optimise our Broadcast business

These pillars are underpinned by a number of priorities (detailed further on page 9), for which we have key performance indicator (KPI) targets to deliver by 2026. ITV has made

strong strategic progress and the 2024 results demonstrate the significant achievements we have made.

We have transformed ITV into a much leaner, digital, more diversified and adaptable business, fit for the future with good opportunities for profitable growth, strong cash generation and attractive returns to shareholders.

Expand ITV Studios

In ITV Studios we have built a scaled, global, diversified and resilient business, driven by very strong creative output, and being focused on delivering good growth and taking market share, benefitting from our significant competitive advantages.

ITV Studios is the largest commercial producer in the UK, one of the largest unscripted producers in the US, and in the top three producers in the key creative markets in which it operates. We produce a broad range of content for a diversified customer base. Over the last two years, around 35% of ITV Studios' revenue has come from the expanding scripted market and around 30% from growing streaming platforms.

In 2024 we saw creative successes with programmes such as Mr Bates vs The Post Office, ITV's biggest drama in over 20 years; Fool Me Once, one of Netflix's most watched shows of all time; Season 6 of Love Island US, the number one reality series across all streaming platforms in the US; and Citadel Diana, Amazon Prime Video's biggest global launch for an Italian original ever.

We continue to successfully attract and retain talent. Our unique blend of creative independence, an entrepreneurial culture, and the resources of a global studio allows our talent to thrive. Recent acquisitions include Hartswood Films in the UK, the producer of Sherlock, and one of the fastest-growing producers Eagle Eye Drama, the producer of Professor T.

Chief Executive's Statement continued

The global content market is large and attractive and we anticipate growth in the key segments of the market in which we operate. This includes premium scripted content and unscripted formats driven by the strong demand from streaming platforms, and catalogue sales, particularly with strong growth in digital distribution.

We have an exciting pipeline of new and returning programmes across scripted and unscripted for a broad range of customers, such as One Piece S2 for Netflix, Rivals S2 for Disney+ and Destination X for the BBC and NBC.

In addition, we have a catalogue of over 95,000 hours, including world-class unscripted IP, and a leading drama library. Having a scaled quality catalogue, gives us really exciting new revenue opportunities as distribution becomes increasingly digital with continuous technological change.

In January 2025, ITV Studios launched Zoo 55, a new digital studios label. Through Zoo 55, we digitally publish ITV content and third party content, globally into social channels, direct to the consumer. This is through social video, free ad supported or FAST channels and through games. Zoo 55 centralises all these activities and supercharges our ability to distribute and monetise it much more effectively. In 2024, Zoo 55 delivered around £60 million of high-margin digital revenue, up c.30% year-on-year, and we expect to double this by the end of 2027, as we launch more channels and games in more territories.

ITV Studios is on track to deliver its key financial targets of total organic revenue growth of 5% on average per annum from 2021 to 2026 - ahead of the market, and at a margin of 13 to 15%. We remain focused on the four strategic priorities (as detailed on the adjacent page) and are confident in our ability to continue growing our market share and deliver exceptional content globally.

Media & Entertainment (M&E)

ITV M&E is the UK's largest commercial broadcaster and BVOD streamer, delivering unrivalled audience scale and reach. It is underpinned by two strategic pillars; Supercharge Streaming and Optimise Broadcast, both of which are critical to our continued success in a rapidly changing market.

The media landscape has changed profoundly since we launched our strategy. Declining linear TV viewing coupled with growth in digital viewing, the proliferation of streaming services (19 new entrants in the UK since 2018 with five having ad-tiers), and the growing influence of platforms like YouTube (viewing up nearly 20% since 2022), have dramatically reshaped the competitive environment.

ITV's strategy recognises these rapid changes and has been laser focused on capitalising on the opportunities and managing and