ITV saw profits down by 12% in 2022, as advertising revenues fell.

The group behind hit shows Love Island and I'm A Celebrity... Get Me Out Of Here! reported underlying pre-tax profits of £672 million for 2022, down from £774 million in 2021, as reported by ITV News.

Its total advertising revenues fell 1%, but the biggest hit came from its investment in the new ITVX online hub, which launched late last year.

ITV predicts a challenging period ahead for its advertising, with ad sales expected to drop by around 11% year-on-year in the first quarter - and by as much as 16% in March - and to remain down by between 10% and 15% in April.

The group said it will continue to manage costs tightly and is set to deliver £15 million of savings in 2023, as part of its target of £50 million savings by 2026, which comes on top of the £106 million of costs cut between 2018 and 2022.

The group said investment in its production arm and a digital push is paying off, with ITV Studios' underlying earnings up 22% at £259 million.

And despite the fall in advertising spending, after a record 2021 result, ITV said 2022 was still the second highest advertising revenue in its history, with digital ad sales up 18% to £411 million.

The company expects digital ad revenues to increase by around 25% in the first three months of 2023, although this is enough not to offset the wider slump in advertising spend.