Things really took a turn for the worst for ITV (LON:ITV) at the end of April. The first few months of the year saw the stock climb to an 11 month peak of £2.20; now it sits at a current trading price of £1.57, only a smidge higher than the £1.52, 14 month nadir struck at the end of August.
Goods news has just been thin on the ground of late. At the start of May CEO Adam Crozier stated he would be stepping down after 7 years, an announcement that was followed a week later by disappointing first quarter report.
The firm did swiftly reveal Crozier’s replacement in July, snatching Carolyn McCall – who was once chief exec at the Guardian Media Group – from easyJet (LON:EZJ), where she had been CEO for 7 years. She will join ITV on 8th January 2018.
The company’s most recent update came at the end of July, when ITV posted its interim results. There the media firm unveiled an unpleasant 16% drop in pre-tax profit to £259 million after an 8% fall in advertising revenue to £769 million. Yet a 7% rise in revenue at ITV Studios – which produces shows like The Voice and I’m A Celeb – meant total revenue only declined 3%, to £1.46 billion.
In terms of Tuesday’s third quarter statement, ITV claimed back in July that advertising revenue would only be down 4% for the period, half the size of the slide seen in the first half of the year. Analysts at HSBC think the figure could be even better, and are eyeing a 3.5% dip. If ITV can add onto this healthy growth at its increasingly important Studios, then it may be able to lift off of its current lows.
ITV PLC has a consensus rating of ‘Hold’ alongside an average target price of £2.12.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved. In relation to fixed odds, Spreadex Ltd is licensed and regulated by the Gambling Commission under licence number.