logo-loader
viewITV PLC

Has ITV found an unlikely friend in Brexit?

ITV has often blamed Brexit for holding back ad revenues, but the government’s £100mln splurge on the ‘Get ready for Brexit’ campaign could help the broadcaster to beat full-year expectations

ITV PLC -
The campaign was launched earlier today and will run for two months

Brexit could actually help ITV PLC (LON:ITV) to top expectations with its full-year results, according to analysts at Liberum.

The FTSE 100 broadcaster has often maligned Brexit and the uncertainty it has created for causing its major clients – retail, travel and leisure companies – to hold back on their advertising spend.

READ: ITV to show more live La Liga matches this season

But the government is set to spend £100mln over the next two months on a public information advertising campaign ahead of next month’s departure date, encouraging the public to be prepared.

City broker Liberum expects around £30mln of that budget to be spent on TV ads, and they argue ITV, given its dominant position as a public service broadcaster, should be in line to receive a decent chunk of that.

“We see traditional media such as linear TV & Outdoor claiming the majority of the total spend given the need for extensive reach, and thus highlight ITV & JC Decaux as main beneficiaries,” said the analysts in a note to clients.

“For ITV, this will increase the chance of a TV advertising revenue growth guidance beat both in Q3 (-1% to +1%, with the rugby world cup also helping on comps in September) and in Q4 and the FY with advertising spend in October.”

The note added: “Most importantly, given the timing of the announcement, this spending won’t be in guidance for either of the companies.”

ITV shares were up 0.5% to 116.5p on Monday morning, valuing the company at £4.7bn. Shortly before the Brexit vote in 2016, the stock was trading at almost double that.

Quick facts: ITV PLC

Price: 146 GBX

AIM:ITV
Market: AIM
Market Cap: £5.88 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

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...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Revenue guidance from OptiBiotix as it eyes NASDAQ listing

OptiBiotix Health (LON:OPTI) provides a commercial progress update, explaining why in their financials some items are separated. CEO Stephen O'Hara tells Proactive London what's behind his thinking adding that Optibiotix hopes to reach profitability in 2020. News here too on Sweetbiotix and...

5 hours, 7 minutes ago

2 min read