12 ITV plc Annual Report and Accounts 2023 ITV plc Annual Report and Accounts 2023 13 S CHIEF EXECUTIVE’S STATEMENT CONTINUED T R A T E G I This capability underpins our ability Cost and efficiency programmeOur Social Purpose SHETLAND is a crime drama In May 2023, we submitted our application C R produced by Silverprint to now compete for online video budgets, to Ofcom for the renewal of our Channel 3 E Our existing cost saving programme of £150 We reach millions of viewers globally, Pictures (an ITV Studios P particularly budgets allocated to platforms licenses, which expire on 31 December 2024. O million between 2019 and 2026, has delivered through our content, and in the UK, label) for the BBC. R such as YouTube, and take share in this £130 million of annualised savings to date through our linear channels and ITVX. We are fully engaged in the process, which T growing addressable advertising market. THREE LITTLE BIRDS we expect to conclude in the first half of 2024. and we are on track to deliver the full £150 We are proud of our position as a Public is a drama written by million by 2025 – one year early. Service Broadcaster (PSB) in the UK, telling Sir Lenny Henry and inspired The progress we have made in Streaming and the stories that are at the heart of culture by his mother’s journey to Colleagues against our KPIs means that we are confident Britain in the late 1950s. of delivering at least £750 million of digital We are now in the early stages of a new and society. We have the opportunity to It aired on ITV1 and ITVX Our colleagues are central to everything that strategic restructuring and efficiency advocate for positive change from social in October 2023. we do and are fundamental to the success of revenues by 2026, with the focus continuing programme across the Group to reshape the issues to environmental matters and beyond, ITV. They have played a significant role in to be ad-funded.cost base, enhance profitability, and support providing the UK public with unbiased delivering our strategy effectively this year We have started 2024 really well and will the growth drivers of Studios and Streaming. information and diverse perspectives. and I am incredibly grateful for the hard work further enhance ITVX in 2024 building on We are building on the foundations we have and commitment all our colleagues show. the momentum we have. We will increase established in digital and data and the Our Social Purpose strategy has four focus I always appreciate how our people love the depth and breadth of content, deliver significant progress we have made in areas: Better Health; Diversity, Equity and collaborating with each other and with so continuous improvements in the product transforming ITV from a linear broadcaster to Inclusion; Climate Action and Giving Back. many partners externally, and how motivated and user experience, and expand its a multi-platform broadcaster and streamer. they are to be part of making great shows distribution and marketing.2023 saw us reach the major milestone for that lift people and change people’s lives. Savings will come mainly from technology Better Health in surpassing our five-year goal Within Broadcast, we have now digitally and operational efficiencies, organisational which was to encourage audiences to take We have continued to invest in the transformed the business and will continue redesign across Group, M&E and ITV Studios over 200 million actions to support their development of our colleagues and in to do so as we become increasingly agile and and permanent reductions in discretionary mental or physical wellbeing. We hit an ensuring we have an inclusive culture where adapt to changing viewer habits. Internally spend across the Group. extraordinary 249 million actions by the everyone can be their authentic selves. I am this means we are always looking at ways to end of 2023 with our flagship mental health pleased that in our 2023 Engagement and increase our efficiency and productivity, By the end of 2024 we expect the programme campaign, Britain Get Talking, playing a Culture Survey, 75% of colleagues who whether that is through the operational use to have delivered incremental annualised significant role in achieving our target. responded, feel like they belong at ITV. of AI or ensuring our cost base is the right savings of at least £50 million gross per year, shape and size. Externally for viewers, it is giving a £30 million in year gross benefit in Our Giving Back activity in 2023 continued with In 2024 we will be running a series of ensuring we continue to engage our 2024. There will be c.£50 million of one-off our biggest fundraising event, Soccer Aid for Roadshows across ITV and I am really looking audiences through live content such as costs to deliver these savings. The ongoing UNICEF. Since its launch in 2006, over £90 forward to meeting many of our colleagues sports and successful entertainment shows programme is designed to deliver further million has been raised. As we move forward, from all areas of the business. With their to continue to deliver mass audiences which incremental material savings over a our Giving Back work will shift towards input, commitment and energy, ITV will are so valuable to advertisers, together with number of years which will further build supporting the next generation called continue to successfully execute our strategy. the personalisation and targeting that comes ITV’s resilience. We will provide further Better Futures. with ITVX. information as the programme progresses. Outlook We have made great progress towards ITV continues to be the best destination for our 2026 KPIs. 2023 was the year of peak advertisers to reach valuable mass investment for Streaming, which together audiences in the UK. Our share of those mass THE BAY returned for its fourth series on ITV in 2023. with the successful execution of our linear TV audiences continued with over 90% It is produced by Tall Story Pictures (an ITV Studios label). strategy and the efficiencies delivered to of the top 1,000 programmes appearing on Climate Action remains a priority across our communication, awareness and training date have made ITV more robust. ITV has ITV and our share of commercial viewing has whole organisation, ensuring we achieve Net of our speaking up channels for individuals a leading, scaled, global Studios business, also been broadly maintained at just under Zero by 2050 in how we make, broadcast and to register concerns, including our speaking a high growth Streaming service and a 33%. This robust performance demonstrates stream our shows, and use our reach to up hotline, SafeCall. I continue to chair the cash generative linear advertising business. ITV’s unique market-leading position in inform and inspire audiences to make Duty of Care Operating Board which This ensures that we are well placed to broadcast in the UK greener choices. Our first Climate Transition meets regularly. grow profits from here as we continue to Plan is published alongside this report. drive material efficiencies, invest behind What sets ITV apart from all its Following the outcome of the external KC our strategic priorities and deliver returns competitors commercially is the ability ITV continues to consolidate our Diversity, Review, which found that ITV’s handling of to shareholders. to deliver four things: Equity and Inclusion work. We have the case surrounding Phillip Schofield and championed diversity across our biggest This Morning was adequate and appropriate. CAROLYN MCCALL • Mass simultaneous reach, CHIEF EXECUTIVE shows introducing a range of new voices In 2024 we will focus on implementing the • Sophisticated targeted advertising on-screen and off-screen and have created recommendations arising from the review. • Commercial and creative partnerships new opportunities for under-represented This includes enhanced speaking up related • A brand-safe and trusted environment. groups to thrive in our business. training focused on different parts of the Group and further strengthening our All of this ensures that we can remain Refer to the Social Purpose section for complaints handling processes. highly competitive in an increasingly further details on the work we have done competitive market. in 2023. Regulation The Media Bill which is currently working its ITVX’s strong performance has continued Duty of Care way through Parliament, will update the legal into 2024. Total advertising revenue (TAR) is Supporting the mental and physical health and regulatory framework for television, expected to be up 3% in Q1 compared to the and safety of colleagues and others who particularly delivered online. This should help same period in 2023, with continued strong work with ITV and those participating in our ensure that content from PSBs, including ITV, growth in digital advertising revenues. productions remains a key priority. We are will be included and easily discoverable committed to addressing promptly, fairly and on all major streaming platforms, on fair Refer to the Operating and Financial confidentially all concerns and monitoring commercial terms. Once the Bill becomes Performance Review for further details of the channels we have in place to ensure they law, we will remain fully engaged with ITV Studios and M&E’s strategic priorities remain appropriate. During 2023 we Ofcom and the government throughout and how the divisions performed in the year.continued to strengthen our Speaking Up any subsequent processes necessary for programme by driving continuous its full implementation.