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Media

ITV's focus once again on ad revenue ahead of trading update

ITV PLC (LSE:ITV) will be bringing the news on Wednesday, updating the market with a trading statement.

The broadcaster only recently released its nine-month results which led to shares falling 6%.

Despite reporting a jump in underlying revenue to £2.5bn, growth slowed from the first half of the year, down to 6% from 8% in the first six months.

Much of what is weighing on revenue is TV ad money, which it forecast for the full year will be down 1% to 1.5%.

This is despite ITV broadcasting FIFA World Cup games from last Sunday (20 November) through to 18 December.

Analysts at UBS said the ad guidance implied growth in the fourth quarter between flat and down 2%, while the City consensus was for around 2% growth.

Sophie Lund-Yates, an equity analyst at Hargreaves Lansdown, said: “The Media & Entertainment division is facing ongoing declines in advertising revenue. Traditional broadcast advertising spots are simply never going to regain their popularity.

ITV’s share price is down 32% in the year so far to 77p.

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