By Paul Sandle
LONDON (Reuters) -British broadcaster ITV (LON:ITV)'s profit more than halved to 152 million pounds ($197 million) in the six months to end-June, it said on Thursday, reflecting a tough advertising market and peak investment in its streaming service ITVX.
Chief Executive Carolyn McCall said strong growth in its Studios production business and digital revenue in the first half largely offset advertising weakness, resulting in total revenue declining 1% in the period.
"Looking forward we see a more encouraging outlook as advertisers build their campaigns around the large streaming and linear audiences expected to be drawn to the Women's World Cup, the Rugby World Cup and the eagerly anticipated return of Big Brother," she said.
The broadcaster said advertising revenue was expected to be down 4% in July and up 7% in August.
It said it was too early to give a forecast for September but early signs were positive and it expected to see growth in the third quarter as a whole.
While total ad revenue in its first half declined 11%, digital revenue rose 24%, McCall said. "More viewers are watching more content (on ITVX) and staying for longer," she told reporters.
Revenue at ITV Studios, which makes "Love Island" and "The Chase", increased by 8%, reaching 1 billion pounds in the period for the first time.
McCall said the U.S. screenwriters' and actors' strikes would not impact ITV this year and if it endured, would mainly hit the phasing of deliveries. She added that only its U.S. scripted business would be affected.
The company terminated talks to buy independent production company All3Media earlier this month.
"We had to look at it, and we looked at it with great interest because it was bang on strategy," she told reporters. "(But) it has to be the right studios business."
"We will remain interested in anything that comes up."
ITV reported external revenue of 1.64 billion pounds for the six months to end-June and adjusted earnings before interest, tax and amortisation of 152 million pounds, down 52%.
Its shares rose 3% to 72 pence.