By Simon Zekaria 

LONDON-- ITV PLC signaled the completion of a multiyear plan to turn around its fortunes by returning hundreds of millions of dollars to investors and recording a profit increase boosted by its internationally growing production business.

ITV said in 2010 that it would generate half its revenue from sources other than traditionally volatile television-advertising breaks in five years through a push into digital media and the selling of programs overseas.

ITV runs shows such as "Downton Abbey"--one of its most popular programs, co-produced by Carnival Films, part of Comcast Corp.'s NBCUniversal, and PBS's Masterpiece. But through ITV Studios--the group's over-the-air broadcaster's production arm--ITV is spending to create its own television shows, such as British drama "Mr. Selfridge," for both its own channels and to sell to international broadcasters.

ITV is also developing its U.S. production unit to win bigger audiences. Over the past years, ITV has steadily acquired majority stakes in reality-TV specialists to become the largest independent producer of unscripted shows in the U.S.

Chief Executive Adam Crozier said the company is investing millions of dollars into programming to keep an edge over rivals. ITV is already spending over $1.8 billion on programming each year and Mr. Crozier said it would spend a further GBP20 million ($31 million) in 2015.

Mr. Crozier said spending on programs is a "huge opportunity" for ITV, given the rewards available in a global content market worth $50 billion, which is growing up to 6% a year.

"Everyone is looking at content being the differentiator," said Mr. Crozier. "We are growing very quickly and it is up to us to keep producing high quality work."

Overall, ITV now has 141 programs on 45 networks in the U.S. Still, despite the success of its shows in the U.S., Mr. Crozier said there are currently no plans to launch a pay-television channel stateside.

ITV, the U.K.'s biggest over-the-air commercial broadcaster, on Wednesday recorded a 43% jump in profit. Net profit in the year to Dec. 31 increased to GBP466 million ($715 million) from GBP326 million in the same period a year earlier. Revenue from external sources rose 8% to GBP2.59 billion. Revenue at ITV Studios was up 9% to GBP933 million.

The group also said there accelerating domestic demand from advertisers in the first quarter of 2015, even as its viewing figures fell. It said advertising revenue is seen up 11% in the first fiscal quarter. Advertising revenue was up 6% to GBP1.63 billion in 2014.

ITV, which has exclusive rights to show the Rugby World Cup later this year, proposed a full-year dividend of 4.7 pence a share, up 34% on the year, and a return to shareholders valued at GBP250 million by a special dividend of 6.25 pence a share.

The London-headquartered group--in which U.S. cable giant Liberty Global PLC paid over $800 million for a 6.4% stake last year to further bolster its position in Europe--said it expects another strong performance in 2015, with continued revenue growth in all parts of the business. It expects ITV Studios to post about GBP100 million of revenue growth on a constant currency basis.

At 1430 GMT, ITV was up 5.3% at 233.6 pence. ITV is ready for a new phase and there are no signs of its growth slowing down, says Hargreaves Lansdown analyst Keith Bowman.

"A more balanced business, less reliant on volatile advertising revenues in the U.K. has been created, with the next phase of its strategy now being pursued."

Write to Simon Zekaria at simon.zekaria@wsj.com

Access Investor Kit for ITV Plc

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=GB0033986497

Access Investor Kit for Comcast Corp.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US20030N1019

Access Investor Kit for Comcast Corp.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US20030N2009

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Comcast (NASDAQ:CMCSA)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Comcast Charts.
Comcast (NASDAQ:CMCSA)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Comcast Charts.