The company uses the key performance indicators to align accountability and performance to the company strategy. The indicators cover all aspects of the strategy and ensure achievement of goals set for the company.
The adjusted EBITA
The profit-making measurement applies to the whole company and refers to the earnings before interest, tax and, amortization. The measurement is unique due to the inclusion of the advantages of production tax credits. The indicator reflects the company performance in a constant pattern and according to the management of the business on a routine basis. The ITV Company improved the EBITA by 20 million or two percent due to an increase of external revenue by three percent. The focus on cost reduction also played a role in the increase of the EBITA.
The adjusted earnings per share (EPS)
EPS refers to the increase in annual adjusted profits due to the contribution of the equity shareholders. The profit is considered before exceptional items, fixed assets and the sale of fixed assets that relate to the items. The indicator provides a report of how the business is managed on a daily basis. The company’s EPS increased by three percent from 16.5 to17. The increase resulted from a lower tax rate during the year.
The profit to cash conversion
The PCC represents the portion of EBITA changed into a measure of adjusted cash flow. The cash derived from operations before special items minus cash related to the purchase of property for operations, plant and equipment and other fixed assets.
The PCC increased to 97% during the year, which shows a continuous proper management of the working capital balances and the disciplined focus on cash and costs management
The balanced scorecard
The ITV Company uses the scorecard to show the financial, internal operations, customer satisfaction and learning growth perspectives of the business. The perspectives assist the company to improve operations both internally and externally.
The financial perspective
ITV Company could increase the revenues by increasing the platforms for customers to view content. The company can increase the revenues from 24% to 42% through video requests through the ITV hub. Additionally, the revenues could increase by increasing the commercials done through the channels. The company can also raise the revenues by 2% through customers downloading of the ITV application by customers.
Moreover, the company has increased the earnings per share by three percent through the lower tax rates of production. Furthermore, the company has achieved a 97% increase in gains through reduction of the operating capital.
Customer perspective
The company could increase the viewers by more than 25% through various strategies, which ensure a wider reach to the customers. The company could achieve customer satisfaction by increased channels of accessing content. The company increased the customer downloads from 24% to 42% through the ITV hub where customers view videos on request. ITV could also increase clients by delivering the most popular soaps, sporting shows, and fact programmes. Additionally, the company airing the top ten dramas through the several channels increases the clientele. The target increase of viewers through the provision of content could be 25% to 30%.
Learning and growth perspective
The company intends to reach the international market, and increase the viewership. The company has grown within the UK and outside to other regions. The income generated from outside the UK added up to more than 50% of the revenues. The company has also invested in other digital content business, which includes a new forum, rocket jump and Ginx.
The company has focused on growth and coming up with new ways of operations. The company has developed an application which customers view contents. A survey showed that about 100million clients suggested the viewing of big shows via the application.
Internal processes perspective
The company should increase the viewership through the channels to beat the competition in the market. The company could increase the platforms for viewing content by the customers. The need to reach more customers leads to the spread to more regions of the globe. Additionally the partnership with other businesses that offer digital content assist in reaching more customers.
