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Hartswood Films, known for producing major hits such as Sherlock, Men Behaving Badly, and Amazon Prime’s The Devil’s Hour, has sold a majority stake to ITV.
ITV has not revealed the exact financial terms of the deal but described the acquisition as a key step in expanding its international footprint.
In recent years, ITV has expanded significantly by acquiring several production companies, including Quay Street Productions, founded by Nicola Shindler, Dominic Treadwell-Collins’ Happy Prince, Ben Stephenson’s Poison Pen Studios, and Plimsoll Productions, which specialises in natural history and factual entertainment.
Sue Vertue, CEO of Hartswood Films, commented on the acquisition: “We at Hartswood Films are very selective with our decisions, and this one took us 40 years to make. We’re thrilled to be partnering with ITV Studios.”
“We’ve always been open to investment as long as we find partners who understand the value of independence, which is fundamental to Hartswood, while also providing us with new skills and strengths.”
“While we’ve done well as a small, independent company, we are incredibly excited about our bigger future and what we can accomplish with ITV Studios.”
ITV Sees Profits Surge Due to Love Island
In related news, ITV has reported a significant increase in profits for the first half of the year, boosted by its studio operations, which benefited from events like the Euros and the popular show Love Island.
On an adjusted basis, ITV’s pre-tax profits increased by more than 50% to £178 million for the six months ending in July, despite a slight 3% dip in revenue to £1.9 billion. Earnings before interest, taxation, and amortisation (EBITA) also rose by 39%, reaching £212 million.
ITV stated that its studio division, which has produced shows such as Mr Bates vs the Post Office and Love Island, is expected to deliver record annual profits. This is driven by higher sales, even though the 2023 US writers’ and actors’ strikes are likely to delay approximately £80 million in revenue.
In the Media and Entertainment sector, adjusted EBITA saw a substantial 230% increase, with total advertising revenue growth exceeding expectations at 10%.
This follows a challenging set of annual results in March, where ITV experienced a notable drop in traditional advertising revenues and announced plans to cut costs. The “restructuring and efficiency programme” is on track to achieve £40 million in savings for 2024.
