Shares in ITV (ITV) rose 5.5 per cent as the broadcaster reported a 16 per cent rise in underlying EPS and a 2 per cent increase in revenue for the first six months of the year.
The revenue growth was impressive, given that ITV's net advertising revenue (NAR) fell 3 per cent and was largely thanks to stellar performance from ITV studios, where investment in content with international appeal, namely drama, entertainment and factual entertainment is clearly paying off. Here, revenue grew 11 per cent to £395m and cash profits rose 26 per cent to £63m. Two companies were also snapped up in the period, costing £53m - The Garden, in the UK, and US-based Thinkfactory Media and High Noon Entertainment.
Broadcast and online revenue dipped 1 per cent, but the division delivered a 7 per cent improvement in cash profit to £228m because of the higher margins on revenues from online, pay and interactive, coupled with good cost control.
Numis Securities expects pre-tax profit of £530m for the full year, giving EPS of 10.1p (from £464m and 8.9p in 2012)
