Shares in ITV PLC (LSE:ITV) rose almost 3% as investors decided to jump onto the positives from a mixed set of interims from the broadcaster.
For while earnings for the first six months of 2023 dropped 52% to £152mln, followers of the stock seemed more interested in the outlook.
CEO Carolyn McCall predicted a more upbeat future as advertisers gear up for large streaming and linear audiences, attracted by significant events such as the Women's World Cup, the Rugby World Cup and the much-awaited return of Big Brother.
ITV projected a 4% decrease in total advertising revenue for July while anticipating a rebound with a 7% increase in August.
The broadcaster stated it was premature to provide a September forecast but indicated early signs were positive, with growth expected in the third quarter.
In the first 20 minutes of trading, the stock was up 1.84p at 71.4p.
“We are reassured to note that ITV is performing broadly in line with expectations against a challenging backdrop and note today’s positive commentary around digital revenues and momentum in Studios,” said regional broker Shore Capital in a note to clients.
“The challenging advertising highlighted above is no great surprise and there is a limited amount that ITV can do to avoid its impact on linear revenues.
“That said, it is pleasing to see the digital category performing strongly and ITV Studios showing significant momentum.
“More broadly we are also positive on linear TV’s ability to deliver a mass market audience as a draw for brands.”