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Pharma & Biotech

Wednesday’s agenda - ITV to broadcast full year earnings

Among those reporting tomorrow are ITV, which will post full year earnings.

Among those reporting tomorrow are ITV (LON:ITV), which will post full year earnings.

It's now a new era at the broadcaster which recently named director Sir Peter Bazalgette to succeed Archie Norman as chairman, which analysts suggested meant the group would not be looking to make any further structural changes.

Bazalgette recently resigned as chair of the Arts Council England and is president of the Royal Television Society.

ITV’s viewing share fell by over 3% last year so investors will be interested to see how this plays out against the numbers.

Results in November, 2015 seemed to augur well. The group forecast a double-digit rise in profit this year and said the initial outlook for 2016 was encouraging.

ITV, home to Coronation Street and the X-Factor, said revenue rose 13% to £2bn in the nine months to September 30 with all parts of the business performing well.

An 8% third quarter increase in advertising revenue drove a 7% rise in broadcast and online revenue to £1.53bn in the period.

For the full year, City broker Numis reckons EPS (earnings per share) will be 16p - just down on consensus of 16.1p.

"We expect a strong contribution from ITV Studios with robust organic growth (9m +9%) supplemented by a first time contribution from Talpa," said analyst Paul Richards.

It reckons a strong first half will have been boosted by Euro 2016 and a softer second half against the Rugby World Cup comparative.

The broker repeats an 'add' stance ahead of the results and has a target price of 300p (current price: 249.7p).

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