ITV
Annual Report 2023

Plain-text annual report

I T V p l c A n n u a l R e p o r t a n d A c c o u n t s f o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 2 3 ITV PLC ANNUAL REPORT & ACCOUNTS 2023 I S T R A T E G C R E P O R T CONTENTS KEY FINANCIALS1 ITV plc Annual Report and Accounts 2023 1 MORE THAN TV OUR strategy Our strategy is focused on three strategic pillars illustrated below. 2023 was the year of peak investment for Streaming, which together with the successful execution of our strategy and the efficiencies delivered to date have made ITV more robust. ITV has a leading, scaled, global Studios business, a high growth Streaming service and a cash generative linear advertising business. This ensures that we are well placed to grow profits from here as we continue to drive material efficiencies, invest behind our strategic priorities and deliver returns to shareholders. Read more on page 10 supercharge STREAMING Driving digital viewing and revenue through ITVX and Planet V, ITV’s leading addressable advertising platform OUR purpose We entertain and connect with millions of people in the UK and globally, reflecting and shaping culture and building brands with brilliant content and creativity. OUR 2026 vision To be a leader in UK advertiser- funded streaming and an expanding global force in content. expand STUDIOS Further expanding by genre, geography and customer and growing faster than market Vertically Integrated Producer Broadcaster and Streamer STRATEGIC REPORT Key Financials An Introduction to ITV and its Business Model Investor Proposition Chair’s Statement Our Key Stakeholders Market Review Chief Executive’s Statement Our Strategy Key Performance Indicators Operating and Financial Performance Review Social Purpose Our People 1 2 4 5 6 7 8 10 14 18 32 40 Alternative Performance Measures 42 Finance Review Non-Financial and Sustainability Information Statement Risks and Uncertainties Climate Related Financial Disclosures Long-term Viability Statement Disclosure GOVERNANCE Chair’s Governance Statement Board of Directors Management Board Corporate Governance Stakeholder Engagement Our Commitment to Section 172(1) Nominations Committee Report Audit and Risk Committee Report Remuneration Report Directors’ Report FINANCIAL STATEMENTS Financial Statements Independent Auditor’s Report Primary Statements ITV plc Company Financial Statements Subsidiary undertakings and investments ADDITIONAL INFORMATION Glossary 45 52 55 65 72 75 77 79 81 84 92 103 106 117 143 148 149 156 229 238 243 optimise BROADCAST Digitally transforming as we continue to attract commercial broadcast audiences of unparalleled scale 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 Group external revenue Cost savings £3,624m -3% (2022: £3,728m) £24m (2022:£23m) Group adjusted EBITA Net debt £489m -32% (2022: £717m) £553m (2022: £623m) Adjusted EPS 7.8p -41% (2022: 13.2p) Profit to cash conversion 102% (2022: 75%) Statutory operating profit Leverage £238m -54% (2022: £519m) Statutory EPS 5.2p -51% (2022: 10.7p) FURTHER READING 1.0x (2022: 0.8x) Dividend 5.0p (2022: 5.0p) Social Purpose Impact Report Read more at itvplc.com/socialpurpose Pay Gap Report Read more at itvplc.com/investors/governance ALTERNATIVE PERFORMANCE MEASURES Strategic Report The Strategic Report explains in detail how we have performed this year and sets out, amongst other things, a fair review of the business, a balanced and comprehensive analysis of our performance, the use of key performance indicators to explain the progress we have made, a description of the principal risks and uncertainties facing the Company, and an indication of potential future developments. The Strategic Report is prepared in line with the relevant provisions of the Companies Act 2006 and the 2018 Corporate Governance Code (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, of its position in the markets within which it operates, and of its prospects. In setting out the Company’s main risks and uncertainties and throughout, this report and accounts contains statements that are based on knowledge and information available at the date of preparation of the Strategic Report, and what are believed to be reasonable judgements, and therefore cannot be considered as indications of likelihood or certainty. A wide range of factors may cause the actual outcomes and results to differ materially from those contained within, or implied by, the various forward-looking statements in this Annual Report and Accounts. None of these statements should be construed as a profit forecast. 1. We use both statutory and adjusted measures in our Strategic Report. The latter, in management’s view, reflects the underlying performance of the business and provides a more meaningful comparison of how the business is managed and measured day-to-day. A full reconciliation between our statutory and adjusted results is provided in our Alternative Performance Measures section. Our KPIs (which are based on adjusted metrics) are set out in the KPIs section. MORETHANTV 2 ITV plc Annual Report and Accounts 2023 ITV plc Annual Report and Accounts 2023 3 * Includes £490 million of digital revenues1 (2022: £411 million) • Integrated producer, broadcaster • Creates and owns the rights to • M&E is differentiated from global 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). ITV TOTAL REVENUE ITV Studios M&E* £2,170m (2022: £2,096m) £2,090m (2022: £2,249m) ITV GROUP ADJUSTED EBITA** ITV Studios M&E £286m (2022: £259m) £205m (2022: £464m) ** A full reconciliation between our adjusted and statutory numbers is included in our APMs section 1. M&E digital revenue includes revenue from digital advertising, subscription, linear addressable advertising, digital sponsorship and commercial partnerships, ITV Win (digital competitions platform) and other revenues from digital business ventures OUR TWO DIVISIONS ITV Studios ITV Studios is a scaled and global creator, owner and distributor of high-quality TV content. It operates in 13 countries, across over 60 labels and has a global distribution network. It is diversified by genre, geography and customer in the key creative markets around the world. ITV Studios is the largest producer in the UK, one of the largest unscripted producers in the US and one of the top three producers in the majority of the international markets in which it operates. ITV Studios has established relationships with key content buyers and leading creative talent in those markets; and with a combined content library of over 90,000 hours, it is also one of the pre-eminent global distributors. Media & Entertainment ITV is the largest commercial broadcaster and streamer in the UK, delivering unrivalled audience scale and reach. M&E includes Streaming and Broadcast through which we distribute content via ITVX, our free advertiser-funded streaming service, and via our free-to-air linear TV channels. Our content is also distributed on third-party partner platforms, such as Sky and Virgin. ITVX also includes a subscription tier, ITVX Premium, which provides subscribers with all of ITVX’s programming ad-free along with other exclusive content. ITV offers advertisers a unique combination of mass simultaneous reach, targeted advertising, and commercial and creative partnerships, in a brand safe environment across ITVX and our linear TV channels. Refer to the Operating and Financial Performance Review for further details on our divisions OUR STRATEGIC ASSETS AND COMPETITIVE ADVANTAGES ITV’s business model is based on a unique set of strategic assets and competitive advantages which enable us to grow our diversified revenue streams and create value for our shareholders. By developing, owning, managing and distributing the rights to content, ITV can maximise the value of its programme brands across ITV Studios, Streaming and Broadcast. This ensures ITV is a more diversified business and enables it to drive value from different revenue models. Group ITV Studios ITV Media & Entertainment I S T R A T E G C R E P O R T and streamer model creates valuable synergies • Strong, trusted brand, products and culture • A high-performing, agile and diverse workforce world-class content • Broad global customer base with major networks, streamers and broadcasters streamers with primarily uniquely British content • Deep commercial relationships with advertisers • Owns Planet V, an intuitive self-serve addressable advertising platform • Strong data capabilities with one of the largest first-party datasets in the UK 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 and 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. 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 simultaneous audiences and targeted advertising at scale. 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 In the UK, we generate streaming subscription revenue through our ad-free tier, ITVX Premium. We monetise our consumer interactions through competitions associated with our programme brands. We also receive third-party revenue from distributing our channels and streaming services to other platforms and services. 58% of revenue generated outside the UK (2022: 60%) 32% total revenue from streamers (2022: 22%) 19 formats sold in 3+ countries (2022: 19) 37% 12.5m monthly active users (2022: 10.5m) 1,505m total streaming hours (2022: 1,192m) SUPPORTED BY OUR… RISK MANAGEMENT FRAMEWORK 91% of revenue from scripted productions (2022: 34%) of the top 1,000 commercial broadcast TV programmes (2022: 93%) 32.6% share of commercial viewing (2022: 33.8%) ITV operates in an increasingly complex business environment and 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, that any underlying risks in the strategy are being appropriately managed and therefore enabling the successful delivery of the strategy. Our business model enables us to create value for all our key stakeholders, see page 6 for further detail. 4 ITV plc Annual Report and Accounts 2023 INVESTOR PROPOSITION ITV is delivering long-term value for shareholders through: 1 Driving significant benefits from our unique position: • As a vertically integrated producer, broadcaster and streamer Refer to the Chief Executive’s Statement on page 8 for further details on these benefits Reasons to INVEST 4 Optimising Broadcast as we continue to attract mass linear TV audiences: • Which remain highly valuable to advertisers as they grow their businesses and drives cash generation for the Group Refer to our KPIs on page 14 and Operating and Financial Performance Review on page 18 for further details 6 Delivering against our KPIs across the Group: • On track to deliver our KPI targets in 2026 Refer to our KPIs on page 14 for further details 2 Growing its leading, scaled and diversified global Studios business: • ITV will grow faster than the global content market, at a margin of 13-15% Refer to Our More than TV Strategy on page 10 and Operating and Financial Performance Review on page 18 for further details 3 Driving strong momentum • Delivering significant growth in digital in streaming: viewing and digital advertising, providing data-driven targeted advertising at scale through Planet V (ITV’s addressable advertising platform) in a trusted, brand safe environment Refer to our KPIs on page 14 and Operating and Financial Performance Review on page 18 for further details 5 Increasing profit over the medium term: • As we continue to rebalance the business towards the growth drivers of ITV Studios and advertiser funded streaming and deliver further efficiencies Refer to Our More than TV Strategy on page 10 and KPIs on page 14 for further details 7 Maintaining a robust balance sheet, strong cash generation and disciplined capital allocation framework: • Invest organically in line with strategic priorities; manage financial metrics consistent with investment grade metrics over the medium term; sustain a full year ordinary dividend of at least 5.0p, which will grow over the medium term; consider value-creating inorganic investment against strict criteria when appropriate; and any surplus capital will be returned to shareholders • £235 million share buyback to be completed within the next 18 months See the Finance Review on page 45 for further details ITV plc Annual Report and Accounts 2023 5 I S T R A T E G C R E P O R T CHAIR’S STATEMENT 2023 WAS A CHALLENGING BUT PRODUCTIVE YEAR In a nutshell, 2023 was a challenging but productive year. Economic headwinds were present throughout the year impacting our financial performance but we made good progress strengthening the internal capabilities of the organisation and hitting a number of key milestones on our strategic journey to be ‘More Than TV’, evolving from a legacy broadcaster to a more sustainable media and entertainment business. Taking the financials first. Total external revenues were down 3% on the prior year as cost of living pressures affected household demand for goods and services and led advertisers to trim their marketing budgets. Adjusted EBITA1 declined 32% reflecting both the drop in revenues and planned investment in ITVX. Free cash flow was £361 million, up 29% vs 2022. The balance sheet remains strong and the Board has proposed a final dividend of 3.3p taking the dividend for the full year to 5.0p, in line with the prior year. This is a total return of around £200 million. The Board has also announced a £235 million share buyback which will be completed within the next 18 months. The media and entertainment industry continues to evolve rapidly. Technology advances are dramatically increasing the choices available, not just in terms of content, but also how, when and where it can be consumed. The emergence of generative AI is a potential game changer in the world of production while the competitor set is shifting, from national TV broadcasters to international streamers and global tech corporations who are increasingly the gatekeepers to our audience. These structural shifts are material and require us to be on our mettle and take appropriate action. We need to ensure our internal ways of working are as sharp and agile as they can be, that we are ready to take difficult decisions to keep our cost base down and have a clear strategy that is future focused and plays to our strengths. Our ‘More Than TV’ strategy has three main objectives: • Expand Studios • Supercharge Streaming • Optimise Broadcast During the year we made good progress on each of the three. Studios grew revenue and profit to record levels deploying its global scale and strength to win business across all major genres and geographies. In streaming, ITVX had a successful launch year, proving technically robust and attracting large cohorts of new viewers with the quality and depth of its content. And our linear broadcast business continued to demonstrate its extraordinary, continuing ability to generate mass, simultaneous audiences. In addition, innovations such as the upgraded iteration of Planet V reinforced ITV’s position as the clear leader for advertisers in UK commercial television. It is the blending of these three strategic elements that makes ITV unique. Together they form an integrated model that allows us to consistently secure world-class content, provides outstanding flexibility and reach for UK advertisers and attracts the best writers and producers to work with us. The model is strengthened by our long-standing status as a Public Service Broadcaster (PSB). A Media Bill is progressing well through Parliament and its final adoption into law will fundamentally update the current regulatory framework and provide enhanced, welcome support to PSBs whose objective voice at a time of such dynamic change has never been more important. 1. Refer to APMs section for the reconciliation between our adjusted and statutory numbers. ITV is a special organisation to be a part of and it’s clear from the frequent engagement surveys we run and our high levels of colleague retention, that people like to work here. They are proud of what we do, of the lead we show on important issues whether it’s mental health; diversity, equity and inclusion; or of the open and respectful way we try to treat each other. Nothing is ever perfect and we are eager to find opportunities to improve, but the values of this Company are sound. There have been a number of changes to our Board during the year. Anna Manz, Mary Harris and Duncan Painter stepped down and I would like to thank them sincerely for their efforts. The Board and the wider Company have benefited enormously from their time with us. In their place I am pleased to welcome Dawn Allen and Marjorie Kaplan. Two highly accomplished leaders who bring different experiences to the Board table and from whom I am sure we will learn much. Finally my thanks to Carolyn and the leadership team for their exceptional efforts during some challenging times and to all my ITV colleagues for their continuing commitment and passion for the cause. ANDREW COSSLETT CBE CHAIR OF THE BOARD 6 ITV plc Annual Report and Accounts 2023 OUR KEY STAKEHOLDERS Our strategy is aligned with the requirements of each of our stakeholders so that we are creating and delivering value for all. CUSTOMERS VIEWERS AND SUBSCRIBERS PARTNERS Including but not limited to the following: Agencies and advertisers We deliver advertisers value through a unique combination of mass simultaneous reach on our linear TV channels, targeted digital advertising powered by Planet V – our proprietary adtech platform, and through commercial and creative partnerships around our quality programme brands on our linear channels and ITVX. Broadcasters, networks and streamers We deliver high-quality TV productions globally, across a range of genres which broadcasters and streamers can monetise through their own business models. Platforms We have strong relationships with aggregators who broadcast our content and pay us for its inclusion on their platforms. Our content offering is varied and high quality, which audiences can watch and engage with, for free or through a subscription, across a variety of channels and platforms in a trusted, brand-safe environment. We collaborate closely with our partners and aim to cultivate strong working relationships. We ensure all suppliers understand and adhere to our Supplier Code of Conduct. OUR COLLEAGUES, PROGRAMME PARTICIPANTS AND EVERYONE WE WORK WITH CITIZENS We protect, invest in and develop our on and off-screen talent, and create a culture that nurtures them to be productive, commercial and creative. People, and their physical and mental health and safety, are our priority at ITV. Refer to the Our People section for further details. As a Public Service Broadcaster (PSB) in the UK, ITV can help shape culture for good. Our provision of free, universally accessible, high-quality content along with a trusted news service, helps to inform citizens, shape public sentiment, drive national conversations and support democratic debate. Refer to Social Purpose for further details. See Our Commitment to Section 172 and the Stakeholder Engagement section for further details of ITV’s key stakeholders and how we engage with them. SHAREHOLDERS, DEBT PROVIDERS AND ANALYSTS LEGISLATORS AND REGULATORS Through the successful execution of our strategic priorities, we will create value for and deliver returns for our investors (equity and debt). ITV takes its responsibilities and obligations as a PSB seriously and conducts business in line with the appropriate laws and regulations, to ensure we operate ethically and responsibly. Refer to the Investment Proposition section for further details. ITV plc Annual Report and Accounts 2023 7 MARKET REVIEW The markets in which we operate are dynamic, increasingly competitive and rapidly changing. The global content market is large and attractive, with all platforms needing access to the best content to attract viewers at scale. Ongoing changes in viewing habits, coupled with an ever-evolving advertising landscape, bring both challenges and opportunities to ITV. I S T R A T E G C R E P O R T TREND ONE TREND TWO TREND THREE 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. Going forward we expect to see growth in key segments of the global content market in which we operate, including content licensing, streamers demand for unscripted content and cost effective premium scripted content. 2024 will be impacted by the 2023 US writers and actors strikes delaying productions until 2025 and weaker demand from free-to-air broadcasters (FTA) in Europe who are holding back spend until they see more certainty in the advertising market. Fragmentation in viewing and changing habits While the average viewing time per person per day remains stable at 4.5-5 hours per day (Source: Ofcom), the competitor set has become increasingly fragmented over time. From PSBs (e.g. BBC, ITV), to global streaming services (e.g. Netflix, Disney+), and user-generated video-sharing platforms (e.g. YouTube, TikTok), viewers now have an unparalleled level of choice and flexibility about what, how, where and when they watch content. The UK advertising market The UK advertising market is worth £36 billion, growing at 7% compound annual growth rate (CAGR) in the past decade. Growth slowed in 2023 (forecast to be +3% in 2023 vs. +9% in 2022), with high inflation leading to reduced marketing budgets. There was also a decrease in venture capital funding, which had funded significant advertising activity in recent years from new market entrants. Total market growth has largely been driven by online advertising, which is expected to be up 5% in 2023 and up 16% CAGR over the last ten years. Online is the largest category of advertising spend (75% of the market) followed by TV advertising (14% of the market). (Source: AA WARC). The TV advertising market is increasingly competitive, with global streaming platforms (Amazon, Netflix, Disney+) having now launched, or shortly set to launch, streaming advertising propositions. Size of global content market in 2023 Average viewing time per person per day 2023 UK advertising market $226bn (Source: Estimate from Ampere Analysis: Feb 2024 – excludes spend from film studios) 4 hours 28 mins (Source: Ofcom Media Nations. Previous 5-year average of 5 hours per day – incl. COVID-19 years) £36bn (Source: AA WARC. 2022: £35 billion) How we are responding Delivery of ITV Studios’ strategic priorities will ensure ITV gains 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 including licensing and demand from streaming platforms for unscripted content and cost-effective premium scripted content. 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 can also capitalise on the value of our extensive catalogue of formats and scripted content. 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. How we are responding As a commercial PSB in the UK, we provide the nation with the flexibility to watch content whenever and wherever, while maximising commercial value. In December 2022, we launched ITVX which provided a step-change in ITV’s streaming offering and now has over 17,000 hours of free content. This has led to significant growth year-on-year in monthly active users of our streaming service, up 19% and streaming hours, up 26%. 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 2024, we will invest around £1.275 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. How we are responding ITV offers our advertising clients something no streamer can – mass simultaneous 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. ITV’s FTA linear TV channels offer unique scale and reach and it remains a cost-efficient and important part of marketing campaigns. 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 19% growth in digital revenues in 2023. Link to risk Link to strategy Link to risk Link to strategy Link to risk Link to strategy 2 E 4 S O 3 S O Key E Expand Studios globally S Supercharge Streaming O Optimise Broadcast Refer to the Strategy section in the CEO’s Statement and to the Operating and Financial Performance Review for further details 8 ITV plc Annual Report and Accounts 2023 CHIEF EXECUTIVE’S STATEMENT EXECUTING OUR MORE THAN TV STRATEGY The successful execution of ITV’s strategy of investing in and growing both production in ITV Studios, and ITVX in Media and Entertainment (M&E), is evident through the robust financial and operating performance in 2023, despite a challenging macroeconomic environment. ITV Studios delivered record revenues and profits as the business continued to demonstrate its strong market position, with outstanding creative deliveries globally. In Media and Entertainment, ITVX drove significant growth in digital viewing and advertising revenues, with the investment on plan. It was the year’s biggest and most successful streaming launch in the UK, firmly establishing its place in the market, and winning the award for Best On-Demand Service at the Edinburgh TV Festival. Financial highlights 2023 was the second-highest revenue outturn in ITV’s history. Total ITV group revenue was down 2% and total external revenue declined by just 3% in 2023 despite the severe decline in linear advertising. ITV’s growth drivers continued to perform well, with 4% growth in ITV Studios and 19% growth in digital revenues helping to substantially offset a 15% decline in linear advertising due to the challenging advertising market. In total, M&E revenues were down 7% in the year. As expected, group adjusted EBITA was down 32% at £489 million which reflects the decline in linear advertising revenue and the planned investment in ITVX. Adjusted EPS was down 41% at 7.8p. We have reached a peak level of net investment in our streaming business in 2023 and we continue to expect to grow profits from here. Statutory profit before tax was down 61% and statutory EPS decreased by 51% to 5.2p. There was strong cash generation in the year, with 102% profit to cash conversion and a robust balance sheet, net debt of £553 million and net debt to adjusted EBITDA leverage of 1.0x. In line with ITV’s dividend policy, the Board has declared a final dividend of 3.3p (2022: 3.3p), giving an ordinary dividend of 5.0p per share for the full year 2023 (2022: 5.0p) As announced on 01 March 2024, ITV sold its 50% holding of BritBox International to BBC Studios for a total consideration of £255 million. The Board will return the entire net proceeds to shareholders through a share buyback of £235 million which we expect to complete within the next 18 months. Our Purpose, Vision and More than TV Strategy The strong operating performance in 2023 demonstrates that the strategy we started implementing in 2018, and evolved in 2022 with the launch of ITVX, is working. We have been able to withstand macroeconomic headwinds because of the actions we have taken to reposition ITV towards higher, sustainable growth areas in global production and digital. The business is demonstrably more balanced and has strong delivery momentum as we continue to drive our strategy. The media landscape continues to evolve rapidly and is more competitive for viewers and advertising, with recent new entrants. We are in a far stronger position than we were in 2018, to focus on ITV’s value drivers and competitive advantages and are confident that we can compete, as evidenced by a very strong programming slate: Mr Bates vs The Post Office is the highest audience drama on any platform for five years; Fool me Once by ITV Studios’ Quay Street Productions is in Netflix’s top 10 English-language dramas of all time, and ITV Commercial consistently outperforms the market. ITV plc Annual Report and Accounts 2023 9 I S T R A T E G C R E P O R T ITV Studios ITV Studios is a scaled and global creator, owner and distributor of high-quality content operating in 13 countries and across 60+ labels; diversified by genre, geography and customer in the key creative markets around the world. ITV Studios benefits from its scale as the largest producer in the UK, one of the largest unscripted producers in the US and one of the top three in the majority of the remaining international markets in which it operates. ITV Studios is a trusted supplier with well-established relationships with key content buyers and leading creative talent in those markets. In 2023 we further delivered against our four strategic priorities (as set out in the Strategy section on the following page) and we remain on track to achieve all our 2026 KPI targets and deliver a 5% total organic revenue CAGR target from 2021 to 2026 – ahead of the market, and operate at industry-leading margins of 13 to 15%. We have grown our scripted business with 316 hours of high-end scripted content delivered in 2023, an increase of 14% from the prior year. This has helped to further diversify our customer base, with almost a third of Studios revenues coming from streaming platforms in 2023, up from 22% in 2022. We also continued to monetise our global formats with 19 formats in 2023 sold in three or more countries (2022: 19). Supported by our integrated model the final priority is to attract and retain the leading talent in the industry. We have seen outstanding creative deliveries from recent talent deals and acquisitions including Fool Me Once and After the Flood from Quay Street Productions, One Piece from Tomorrow Studios, and Big Beasts from Plimsoll Productions. The global content market is large and attractive, with all platforms needing a mix of content to succeed in a very competitive landscape to attract audiences. We expect to see growth in key segments in which we operate – content licensing, demand from streaming platforms for unscripted content and cost effective premium scripted content. ITV Studios is very well positioned to take advantage of this growth and to grow our market share over the medium term, driven by our scale and diversified position, our investment in development and creative talent and our high-quality IP. As previously guided, 2024 will be impacted delays in production as a result of the writers’ and actors’ strike in the US, combined with the continuation of weaker demand from FTA broadcasters in Europe who are holding back spend until they see more certainty in the TV advertising market. AN AUDIENCE WITH KYLIE aired on ITV in December 2023. THE LONG SHADOW is a true-crime drama and was the most-watched series of the year on ITVX. Our purpose remains unchanged, we entertain and connect with millions of people in the UK and globally, reflecting and shaping culture and building brands, with brilliant content and creativity. Our vision is that by 2026 ITV will be a leader in UK advertiser-funded streaming, and an expanding global force in content. We are focused on three strategic pillars to deliver this vision: • Expand our UK and global production business • Supercharge our Streaming business, and • Optimise our Broadcast business These pillars are underpinned by a number of priorities, and we have set key performance indicators and targets to deliver by 2026. With the strong progress we have made to date, we are on track and confident we can deliver against these targets. The following page provides further detail on our strategic priorities, why they are important and what they drive. Integrated producer broadcaster and streamer ITV has a unique market position as a global and diversified vertically integrated producer broadcaster and streamer with content central to everything we do. This model benefits both divisions and therefore the Group: For ITV Studios it: • Provides a sustainable base of core commissions which gives stability in a changeable industry; • Helps with attracting and retaining industry-leading talent which is key to a successful creative business; • Provides a platform to make Studios’ content famous and enables cross- promotion, supporting the international sale of our content and formats, and the monetisation of our IP across our business models For M&E it: • Provides access to world-class content for ITV’s linear TV channels and ITVX, driving viewing growth; • Enables deeper and more creative and productive partnerships with advertisers, driving revenue; • Helps protect from content price inflation For the Group, this gives us a real competitive advantage, providing attractive economics as we operate across the entire value chain, and benefit from diversification in a cyclical industry. 10 ITV plc Annual Report and Accounts 2023 CHIEF EXECUTIVE’S STATEMENT CONTINUED Media & Entertainment (M&E) ITV M&E is the largest commercial broadcaster and streamer in the UK, delivering unrivalled audience scale and reach. It is underpinned by two strategic pillars; Supercharge Streaming and Optimise Broadcast. By Supercharging Streaming, we aim to drive digital revenues through ITVX and Planet V (ITV’s proprietary, self-service programmatic addressable advertising platform). We launched ITVX on time and our investment is on plan and on budget. In our first full year of ITVX we delivered a step change in viewing and digital revenues were up 19%. We increased the number of monthly active users by almost 20%, up to 12.5 million and those users are spending more time engaging with the platform with streaming hours up 26% to 1.5 billion hours. Brand awareness is now up to over 90% and we have seen a significant increase in streaming hours for light viewers who are harder to reach, up 65%, and our key target audience of 25-54s which was up 47%. The key focus of ITVX is our ad-funded proposition which is where we have channelled our efforts and resources in its launch year. In addition, we have ITVX Premium, a subscription service, which is primarily an ad-free offering for viewers. The number of paid-for UK subscribers declined marginally year on year as we started transitioning subscribers from our standalone app, BritBox UK, into ITVX Premium, combined with the closure of the ITV Catch Up service on Amazon Prime Video Channels. In 2024, the BritBox UK service on Amazon Prime Video Channels and the Britbox UK standalone app will close as we further simplify our offering. This will consolidate all our subscribers under one ITVX Premium brand and will give us complete ownership of the subscriber base. The closure of these services is expected to impact subscriber numbers and subscription revenues in 2024. Planet V is the platform enabling the growth of ITV’s digital advertising – it is a market-leading addressable advertising platform which creates and delivers targeted advertising at scale. It enables us to create sophisticated audience segments and serve ads directly to them. All the major agencies are using Planet V and see it as an intuitive, easy-to- buy self-serve platform, allowing them to streamline their approach to planning and buying. ITV has one of the largest first-party data sets in the UK, with over 40 million registered users on ITVX. Agencies and advertisers can make use of this alongside their own data and other first and third-party datasets, to create more precise addressable campaigns. Advertisers are prepared to pay more for this increasingly sophisticated and valuable ad inventory. OUR MORE THAN TV STRATEGY Our strategy is focused on three strategic pillars 1) Expand Studios; 2) Supercharge Streaming; and 3) Optimise Broadcast. These pillars are underpinned by a number of priorities (detailed below) to ensure that ITV is best placed to capitalise on the opportunities presented by the rapidly changing viewing, content production and advertising environments. These pillars are not independent. They work together – reinforcing each other, creating synergies and delivering value. To support the successful delivery of the strategy, we have key performance indicators (KPIs) and related targets to be delivered from 2021 to 2026 which we are on track to deliver. The key to successfully delivering this strategy is digitally transforming everything we do. The successful execution of our strategy to date has made ITV more robust. ITV has a leading, scaled, global Studios business, a high growth Streaming service and a cash generative linear advertising business. This ensures that we are well placed to grow profits from here as we continue to drive material efficiencies, invest behind our strategic priorities and deliver returns to shareholders. I S T R A T E G C R E P O R T ITV plc Annual Report and Accounts 2023 11 2026 STUDIOS TARGET Grow total organic revenues by 5% on average per annum to 2026 – which is ahead of the market at a margin of 13% to 15% expand STUDIOS Further expanding by genre, geography and customer and growing faster than market supercharge STREAMING Driving digital viewing and revenue through ITVX and Planet V, ITV’s leading addressable advertising platform Vertically Integrated Producer Broadcaster and Streamer optimise BROADCAST Digitally transforming as we continue to attract commercial broadcast audiences of unparalleled scale 2026 M&E TARGET Grow digital revenues to at least £750m across M&E ITV Studios – STRATEGIC PRIORITIES AND KPI TARGETS Expanding UK and global productions is central to ITV’s strategy. ITV Studios’ ambition is to be a leading force in the creation and ownership of intellectual property (IP), global content production and distribution. We are achieving this by focusing on our four strategic priorities to drive revenue and profit growth. PRIORITIES WHY IT’S IMPORTANT FY 2026 TARGET FY 2023 WHAT IT DRIVES 1. Grow our scripted business S T U D O S I To meet the growing global demand for scripted content particularly from streaming platforms 400 high-end scripted hours per annum 316 hours (2022: 276 hours) 2. Grow our global formats business 3. Further diversify our customer base To maximise international monetisation of high-value formats 20 formats sold in three or more countries 19 formats (2022: 19 formats) To capture the growth in content spend from local and global streaming platforms 30% of total revenues from streaming platforms 32% (2022: 22%) 4. Attract and retain leading talent Key to creative success of a Studios business N/A N/A Growth in total organic revenue of 5% on average per annum to 20261 which is ahead of the market Delivers adjusted EBITA2 margins of 13% to 15% In 2023, total organic revenue grew 3% at an adjusted EBITA margin of 13.2% MEDIA & ENTERTAINMENT – STRATEGIC PRIORITIES AND KPI TARGETS ITV’s M&E strategy is based on two core pillars: Supercharge Streaming and Optimise Broadcast, with strategic priorities to drive growth in digital revenues and maintain strength in linear. PRIORITIES WHY IT’S IMPORTANT FY 2026 TARGET FY 2023 WHAT IT DRIVES S T R E A M N G I B R O A D C A S T 1. Attract more monthly active users to ITVX 2. Increase the time users spend on ITVX 3. Increase UK subscriber base ITV’s reach is key to retaining and attracting advertisers ITV’s scale is key to retaining and attracting advertisers Monetising ITV viewers who are willing to pay for ad-free and additional content Grow monthly active users to 20 million 12.5 million (2022: 10.5 million) Grow total streaming hours to 2 billion hours 1,505 million hours (2022: 1,192 million hours) Grow subscribers to 2.5 million 1.3 million (2022: 1.4 million) 4. Maintain our strength in delivering mass linear audiences ITV’s mass linear audiences remains very important to UK advertisers Maintain a share of at least 80% of the top 1,000 programmes 91% (2022: 93%) 5. Maintain ITV’s position in UK broadcast market ITV’s scale remains very important to UK advertisers Maintain a share of commercial viewing of 33% 32.6% (2022: 33.8%) Growth in digital revenues to at least £750m by 2026 Revenues from linear TV advertising, commercial and creative partnerships, and sponsorship In 2023, total digital revenues were £490 million, up 19% year-on-year 1. Average annual growth rate from 2021. 2. Refer to APMs for detail on our adjusted measures. 12 ITV plc Annual Report and Accounts 2023 CHIEF EXECUTIVE’S STATEMENT CONTINUED This capability underpins our ability to now compete for online video budgets, particularly budgets allocated to platforms such as YouTube, and take share in this growing addressable advertising market. The progress we have made in Streaming and against our KPIs means that we are confident of delivering at least £750 million of digital revenues by 2026, with the focus continuing to be ad-funded. We have started 2024 really well and will further enhance ITVX in 2024 building on the momentum we have. We will increase the depth and breadth of content, deliver continuous improvements in the product and user experience, and expand its distribution and marketing. Within Broadcast, we have now digitally transformed the business and will continue to do so as we become increasingly agile and adapt to changing viewer habits. Internally this means we are always looking at ways to increase our efficiency and productivity, whether that is through the operational use of AI or ensuring our cost base is the right shape and size. Externally for viewers, it is ensuring we continue to engage our audiences through live content such as sports and successful entertainment shows to continue to deliver mass audiences which are so valuable to advertisers, together with the personalisation and targeting that comes with ITVX. ITV continues to be the best destination for advertisers to reach valuable mass audiences in the UK. Our share of those mass linear TV audiences continued with over 90% of the top 1,000 programmes appearing on ITV and our share of commercial viewing has also been broadly maintained at just under 33%. This robust performance demonstrates ITV’s unique market-leading position in broadcast in the UK What sets ITV apart from all its competitors commercially is the ability to deliver four things: • Mass simultaneous reach, • Sophisticated targeted advertising • Commercial and creative partnerships • A brand-safe and trusted environment. All of this ensures that we can remain highly competitive in an increasingly competitive market. ITVX’s strong performance has continued into 2024. Total advertising revenue (TAR) is expected to be up 3% in Q1 compared to the same period in 2023, with continued strong growth in digital advertising revenues. Refer to the Operating and Financial Performance Review for further details of ITV Studios and M&E’s strategic priorities and how the divisions performed in the year. SHETLAND is a crime drama produced by Silverprint Pictures (an ITV Studios label) for the BBC. THREE LITTLE BIRDS is a drama written by Sir Lenny Henry and inspired by his mother’s journey to Britain in the late 1950s. It aired on ITV1 and ITVX in October 2023. Cost and efficiency programme Our existing cost saving programme of £150 million between 2019 and 2026, has delivered £130 million of annualised savings to date and we are on track to deliver the full £150 million by 2025 – one year early. We are now in the early stages of a new strategic restructuring and efficiency programme across the Group to reshape the cost base, enhance profitability, and support the growth drivers of Studios and Streaming. We are building on the foundations we have established in digital and data and the significant progress we have made in transforming ITV from a linear broadcaster to a multi-platform broadcaster and streamer. Savings will come mainly from technology and operational efficiencies, organisational redesign across Group, M&E and ITV Studios and permanent reductions in discretionary spend across the Group. By the end of 2024 we expect the programme to have delivered incremental annualised savings of at least £50 million gross per year, giving a £30 million in year gross benefit in 2024. There will be c.£50 million of one-off costs to deliver these savings. The ongoing programme is designed to deliver further incremental material savings over a number of years which will further build ITV’s resilience. We will provide further information as the programme progresses. Our Social Purpose We reach millions of viewers globally, through our content, and in the UK, through our linear channels and ITVX. We are proud of our position as a Public Service Broadcaster (PSB) in the UK, telling the stories that are at the heart of culture and society. We have the opportunity to advocate for positive change from social issues to environmental matters and beyond, providing the UK public with unbiased information and diverse perspectives. Our Social Purpose strategy has four focus areas: Better Health; Diversity, Equity and Inclusion; Climate Action and Giving Back. 2023 saw us reach the major milestone for Better Health in surpassing our five-year goal which was to encourage audiences to take over 200 million actions to support their mental or physical wellbeing. We hit an extraordinary 249 million actions by the end of 2023 with our flagship mental health campaign, Britain Get Talking, playing a significant role in achieving our target. Our Giving Back activity in 2023 continued with our biggest fundraising event, Soccer Aid for UNICEF. Since its launch in 2006, over £90 million has been raised. As we move forward, our Giving Back work will shift towards supporting the next generation called Better Futures. THE BAY returned for its fourth series on ITV in 2023. It is produced by Tall Story Pictures (an ITV Studios label). Climate Action remains a priority across our whole organisation, ensuring we achieve Net Zero by 2050 in how we make, broadcast and stream our shows, and use our reach to inform and inspire audiences to make greener choices. Our first Climate Transition Plan is published alongside this report. ITV continues to consolidate our Diversity, Equity and Inclusion work. We have championed diversity across our biggest shows introducing a range of new voices on-screen and off-screen and have created new opportunities for under-represented groups to thrive in our business. Refer to the Social Purpose section for further details on the work we have done in 2023. Duty of Care Supporting the mental and physical health and safety of colleagues and others who work with ITV and those participating in our productions remains a key priority. We are committed to addressing promptly, fairly and confidentially all concerns and monitoring the channels we have in place to ensure they remain appropriate. During 2023 we continued to strengthen our Speaking Up programme by driving continuous communication, awareness and training of our speaking up channels for individuals to register concerns, including our speaking up hotline, SafeCall. I continue to chair the Duty of Care Operating Board which meets regularly. Following the outcome of the external KC Review, which found that ITV’s handling of the case surrounding Phillip Schofield and This Morning was adequate and appropriate. In 2024 we will focus on implementing the recommendations arising from the review. This includes enhanced speaking up related training focused on different parts of the Group and further strengthening our complaints handling processes. Regulation The Media Bill which is currently working its way through Parliament, will update the legal and regulatory framework for television, particularly delivered online. This should help ensure that content from PSBs, including ITV, will be included and easily discoverable on all major streaming platforms, on fair commercial terms. Once the Bill becomes law, we will remain fully engaged with Ofcom and the government throughout any subsequent processes necessary for its full implementation. I S T R A T E G C R E P O R T ITV plc Annual Report and Accounts 2023 13 In May 2023, we submitted our application to Ofcom for the renewal of our Channel 3 licenses, which expire on 31 December 2024. We are fully engaged in the process, which we expect to conclude in the first half of 2024. Colleagues Our colleagues are central to everything that we do and are fundamental to the success of ITV. They have played a significant role in delivering our strategy effectively this year and I am incredibly grateful for the hard work and commitment all our colleagues show. I always appreciate how our people love collaborating with each other and with so many partners externally, and how motivated they are to be part of making great shows that lift people and change people’s lives. We have continued to invest in the development of our colleagues and in ensuring we have an inclusive culture where everyone can be their authentic selves. I am pleased that in our 2023 Engagement and Culture Survey, 75% of colleagues who responded, feel like they belong at ITV. In 2024 we will be running a series of Roadshows across ITV and I am really looking forward to meeting many of our colleagues from all areas of the business. With their input, commitment and energy, ITV will continue to successfully execute our strategy. Outlook We have made great progress towards our 2026 KPIs. 2023 was the year of peak investment for Streaming, which together with the successful execution of our strategy and the efficiencies delivered to date have made ITV more robust. ITV has a leading, scaled, global Studios business, a high growth Streaming service and a cash generative linear advertising business. This ensures that we are well placed to grow profits from here as we continue to drive material efficiencies, invest behind our strategic priorities and deliver returns to shareholders. CAROLYN MCCALL CHIEF EXECUTIVE 14 ITV plc Annual Report and Accounts 2023 KEY PERFORMANCE INDICATORS Our KPIs and related targets for 2026 align our performance and accountability with our strategic priorities. This is detailed further in the Strategy section of the Chief Executive’s Statement. All KPIs are reported on a six-month basis. The following are reported quarterly: ITV Studios total revenue growth, total digital revenue, total streaming hours, share of commercial viewing and share of top 1,000 commercial broadcast TV programmes. Refer to the Operating and Financial Performance Review for further details on the performance of all our KPIs. ITV GROUP Adjusted EPS1 Adjusted EPS represents the adjusted profit after tax1 attributable to each equity share in the year. It is an important measure as we aim to create long-term value for our shareholders. Performance Adjusted EPS decreased by 41% from 13.2p to 7.8p. Strong growth in ITV Studios adjusted EBITA1, up 10%, was offset by a decline in total advertising revenues (TAR), down 8%, and an increase in M&E costs from the planned investment in content for ITVX, higher streaming related costs and third-party commercial payaways. 2023 7.8p ‑41% on 2022 2020 2021 2022 2023 10.9 15.3 13.2 7.8 Cost savings Cost savings are permanent savings to the business. Managing our cost base and mitigating the impact of inflation is key as we aim to run our business as efficiently as possible and fund investments in line with our strategic priorities. Performance We delivered £24 million of permanent cost savings in 2023, which is ahead of the £15 million in year target. To date, we have delivered £130 million of our 2019 to 2026 target of £150 million. 2023 £130m cumulative savings since 2018 We are now in the early stages of a new strategic restructuring and efficiency programme across the Group which will deliver incremental annualised savings of at least £50 million gross per year, giving a £30 million in year gross benefit in 2024. 2026 Target Deliver over £150 million of cumulative savings between 2018 and 2026 Profit to cash conversion1 One of ITV’s strengths is its cash generation, reflecting our ongoing tight management of working capital balances. Profit to cash conversion serves as a key indicator in measuring our effectiveness. It is calculated as our adjusted cash flow as a proportion of adjusted EBITA1. Performance Profit to cash conversion was 102% in the year. The strong outturn compared to 2022 was due a favourable movement in working capital from the unwind of programme rights and inventory previously built up for the launch of ITVX. In addition, there has been a reduction in production inventories predominantly in the US as a result of the 2023 writers’ and actors’ strike. 2023 102% 2020 2021 2022 2023 138 80 75 102 2026 Target Maintain at around 85% 1. A full reconciliation between our adjusted and statutory results is provided in the APMs section EXPAND STUDIOS UK AND GLOBAL PRODUCTION ITV Studios total organic revenue growth2 ITV Studios total organic revenue growth measures the scale and success of our global studios business. It includes revenues from programmes sold to M&E, which as a vertically integrated producer, broadcaster and streamer, is an important part of our business. Performance Total organic revenue was up 3% following a strong 2022 which was up 14%. Organic revenue excludes the benefit of our acquisitions of Plimsoll Productions and Lingo Pictures in 2022, and the unfavourable impact of a £15 million foreign exchange movement. ITV Studios total revenue grew 4% to £2,170 million. ITV Studios adjusted EBITA2 margin % This is the key profitability measure used across the ITV Studios business. The margin is calculated on ITV Studios total revenue. Performance ITV Studios adjusted EBITA margin was 13.2% (2022: 12.4%), which is restored within the targeted range. Total high‑end scripted hours Total high-end scripted hours is an important measure in assessing the success of our strategic priority, to grow our scripted business. High-end scripted hours include new commissions or returning franchises that have a higher cost per hour than continuing drama. Performance The number of high-end scripted hours produced by ITV Studios increased by 14% to 316 hours in 2023 driven by titles such as Big Beasts, Fool Me Once and Love Island in the UK, and Twin Love and Physical in the US. Number of formats sold in three or more countries3 The Studios business is focused on maximising the international monetisation of high-value formats. A good measure of international success is when a format is commissioned in three or more countries in the year. Performance The number of formats sold in three or more countries was 19, which was flat year-on-year. Recent formats that have sold in three or more countries include; My Mum, Your Dad; Pranked; and Song of my Life. ITV plc Annual Report and Accounts 2023 15 I S T R A T E G C R E P O R T 2023 +3% on 2022 2020 0 2021 2022 2023 3 14 31 Note: 2020 was down 25% due to the impact of the COVID-19 pandemic. 2026 Target Grow by 5% on average per annum (from 2021) 2023 13.2% +0.8 basis points on 2022 2020 2021 2022 2023 2026 Target Deliver in the 13% to 15% range 11 12 12.4 13.2 2020 112 2021 2022 2023 2020 2021 2022 2023 175 276 316 14 15 19 19 2023 316hrs +14% on 2022 2026 Target Grow to 400 hours 2023 19 formats flat on 2022 2026 Target Grow to 20 formats % of ITV Studios total revenue from streaming platforms Over the medium term, the key driver of growth in the global content market is expected to be from streaming platforms. The percentage of ITV Studios total revenue from streaming platforms is an important measure of delivering its strategic priority of further diversifying its customer base and meeting its 2026 total organic revenue growth target. Performance The percentage of ITV Studios total revenue from streaming platforms grew to 32%, hitting the target three years early. Meeting this target is impacted by the phasing of deliveries and therefore our target is to maintain at least 30%. Notable deliveries to streaming platforms in 2023 included: Squid Games: The Challenge and One Piece for Netflix, and Franklin for Apple TV+. 2023 32% +10 basis points on 2022 2020 10 2021 13 2022 2023 22 32 2026 Target Grow to 30% of ITV Studios total revenue 2. Our APMs are defined within the APMs section of this report. It also includes a full reconciliation between our adjusted and statutory results 3. Spin-offs such as Love Island Games, are considered distinct from the original format (i.e. Love Island) for the purpose of this indicator 16 ITV plc Annual Report and Accounts 2023 KEY PERFORMANCE INDICATORS CONTINUED M&E SUPERCHARGE STREAMING Total digital revenue1 M&E OPTIMISE BROADCAST Share of top 1,000 commercial broadcast TV programmes5 Total digital revenue comprises all revenue streams from our digital businesses, predominantly digital advertising. It is an important measure of the acceleration of our digital strategy as we supercharge streaming. Performance Total digital revenue grew 19% to £490 million. The growth was driven by digital advertising revenue, which was up 21%. This was marginally offset by a decline in competition revenues through ITV Win. 2023 £490m +19% on 2022 2020 2021 2022 2023 248 347 411 490 Maintaining our strength in delivering mass commercial linear TV audiences enables ITV to attract and retain advertisers and command a premium from them. ITV plc Annual Report and Accounts 2023 17 I S T R A T E G C R E P O R T 93 93 93 91 32.8 33.1 33.8 32.6 Performance Our 2023 share was 91%, which was down 2% points year-on-year, with 2022 benefiting significantly from the FIFA World Cup. In 2023, dramas such as Unforgotten and The Bay, entertainment formats such as Britain’s Got Talent and Saturday Night Takeaway and sporting events such as Rugby World Cup, helped to maintain ITV’s strong commercial mass audience proposition. 2023 91% ‑2 basis points on 2022 2020 2021 2022 2023 2026 Target Maintain a share of at least 80% Share of commercial viewing6 Maintaining ITV’s number one position in the UK broadcast market helps us attract and retain advertisers and is vital to maximising advertising revenues. Performance Share of commercial viewing decreased by 1.2% points to 32.6% in 2023, with strong viewing for the FIFA World Cup benefiting our share in 2022. 2023 32.6% ‑1.2 basis points on 2022 2020 2021 2022 2023 2026 Target Maintain at 33% 5. The share of top 1,000 commercial broadcast TV programmes is measured by BARB based on viewing figures. This includes TV viewing from transmission and seven days post-transmission on catch up, as well as six weeks prior to the transmission window. It excludes programmes with a duration of

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