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The Markets
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The Markets
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Media

ITV forecasts might prove overly cautious suggests analyst

ITV's "valuable" update on Thursday could prove whether it is being "overly bearish" by forecasting lower ad spend, Shore Cap said

ITV's update on Thursday (2 March) will be the first time the broadcaster has commented on its new streaming service ITVX since announcing a 55% increase in the number of hours watched across its platforms between December and January.

“The performance of ITVX in terms of viewing and capturing advertising spend will […] be an area of keen investor scrutiny,” broker Shore Capital explained, following previous warnings from the FTSE 250-listed broadcaster that revenue streams might be hit this year.

Shore Cap added ITV’s strong share price performance, up 13% this year, suggests investors believe the group, which predicted advertising spend to be down 1-1.5%, was being “overly bearish”.

The bank reiterated its ‘buy’ rating for ITV and predicted revenues to hit £3.6bn on Thursday, alongside pre-tax earnings of £780mln and earnings per share of 13.1p.

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