Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

ITV says pressures on advertising income to ease in the third-quarter as it posts in-line first-half results

The FTSE 100-listed firm said its ITV family net advertising revenue is expected to fall by around 4% in the third quarter, compared with an 8% drop to £769mln in the first-half
Broadchurch
The group saw its first-half adjusted underlying earnings (EBITDA) fall by 8% to £403mln

ITV plc (LON:ITV) saw its shares rise this morning after the commercial broadcaster said its full-year guidance remains unchanged with pressures on its advertising income likely to ease in the third-quarter as it reported in-line first-half results supported by growth from its production and online businesses.

The FTSE 100-listed firm said its ITV family net advertising revenue (NAR) is expected to fall by around 4% in the third quarter, compared with an 8% drop to £769mln in the half-year to June 30.

READ: ITV shares gain after poaching easyJet boss Carolyn McCall as its new chief executive

The ‘Coronation Street’ and ‘Broadchurch’ broadcaster saw its total first-half revenue fall by 3% to £1.458mln, with 6% growth in non-NAR income partially offsetting the advertising revenue decline.

ITV saw its total ITV Studio revenues increase by 7% to £697mln, including £42mln of currency benefits, while online pay and interactive revenues rose by 5% to £112mln.

The group - which recently announced that Carolyn McCall would leave budget airline easyJet PLC (LON:EZJ) to be its new chief executive – saw its first-half adjusted underlying earnings (EBITDA) fall by 8% to £403mln.

Peter Bazalgette, currently the broadcaster’s executive chairman, said: “ITV's performance in the first six months of the year is very much as we anticipated and our guidance for the full year remains unchanged.”

The firm is to pay an interim dividend of 2.52p, an increase of 5%, reflecting its “confidence in the underlying strength of the business.”

Shares jump 

In reaction, ITV shares gained in afternoon trading, rising 1.82%, or 3.22p, at 179.90p.

In an initial note to clients, analysts at Liberum Capital said: “Q3 NAR guided to -4% but July looks much better than expected at -5% and the -4% is predicated on September being at the low end of the flat to -5% range so there could be upside.”

They reiterated a ‘buy’ rating and 320p price target on the commercial broadcaster.

 -- Adds share price, analyst comment --

View full ITV profile View Profile

ITV plc Timeline

Related Articles

marketing
November 23 2017
Changes to the board and management team this year are having a positive effect on the performance of the business, said chief executive Steffan Williams
marketing
November 15 2017
Next Fifteen Communications expects another strong performance in the second half
learning symbol on a keyboard
January 16 2017
The English language learning specialist is confident it can kick on in the coming year

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use