ITV share price: what to expect from its Q2 results
The broadcaster's Q2 revenue could be impacted by its spending on Britbox and paying strong dividends to investors.
When is ITV’s Q2 results date?
ITV’s Q2 results will be released July 24.
ITV results preview: what does the City expect?
After ITV had a disappointing Q1 results report, the corporation warned that Q2 earnings could be diminished with the lack of a major sport event like the World Cup to drive advertising revenue. ITV’s share price has plummeted about 40% over the last year. The company's share price is at its lowest point in almost seven years.
Despite lowered expectations for ITV‘s Q2 earnings, financial analyst, Edward Sheldon, rates ITV stock as a ’hold’ because of the company's focus on delivering more content to customers. The Simply Wall Street website says that since ITV is undervalued because of its diminished share price, it’s a ‘buy’ for investors. Even though ITV share price is struggling, ITV still pays a hefty dividend of 7.6% to investors. Financial expert, Roland Head, says ITV stock is a ‘buy’ because of the high dividend payout.
Britbox expenditures could impact ITV’s Q2 revenue
ITV is spending £25 million before its impending launch of Britbox. Britbox is a streaming service that will have content from ITV and the BBC. The outlet is meant to compete with streaming behemoth Netflix. Kevin Lygo, director of television at ITV, spoke about the expenses of launching Britbox eventually adding to ITV’s value.
‘It will add to what we do, it's extra expenditure, we have no intention of lowering our programme spend,’ said Lygo.
Robert Stephens of Investomania also believes ITV’s Q2 revenue may increase because of investment in digital entertainment. The service is expected to launch later this year but could still have an impact on ITV’s Q2 revenue as investors will see if the extra spending on Britbox was warranted.
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Investors will see if ITV’s investment in streaming entertainment and impressive dividends will help ITV’s Q2 earnings.
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