ITV rises as CEO ‘confident’ about an improved outlook
While the broadcaster reported total revenue down 2%, there were record revenues in ITV Studios, up 4%. Advertising revenues saw a widening of income through from digital as compared to what ITV calls linear ad revenue.
Online digital revenues climbed 19% while there was a 15% drop in money coming in from traditional forms of advertising. Group adjusted EBITA was down 32% at £489 million - reflects that drop in sales. Today’s 6% rise in ITV’s share price comes after a big rise seen on 1 March when ITV announced it had sold its 50% holding of BritBox International to the BBC for a total consideration of £255 million. The Board intends to return the entire net proceeds to shareholders through a £235 million share buyback, which commenced today.
(AI Video Summary)
ITV
ITV, a popular broadcaster, has seen a big increase in its stock price, reaching levels not seen since November 2023. The reasons for this rise can be attributed to the impressive performance of its production unit, ITV Studios, which saw a 4% increase in revenues. This is particularly noteworthy because overall group revenues declined by 2%. The company also reported a 19% growth in digital revenues, which helped make up for a 15% drop in traditional advertising revenues, known as "linear advertising." The decline in linear advertising is due to a tough advertising market.
Carolyn McCall
Despite the challenging conditions, CEO Carolyn McCall expressed confidence in the future prospects of the advertising sector compared to the previous year. Looking at the stock price chart, we can see that the stock has climbed above the 65 pence level, getting close to the 200-day moving average. However, it has since dropped from its peak. Nevertheless, the shares rose by 6% on the trading day, which is seen as a positive outcome for ITV.
BritBox
In addition, ITV is divesting from its other streaming business, BritBox, and has confirmed that the deal has started returning over £200 million to shareholders. This caused a more than 12% increase in shares. The process of returning the money to shareholders has already begun through share buybacks.
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