The post-pandemic ascendancy of Royal Mail (RMG) and ITV (ITV) has been far less extreme. Yet investors should still question the merit behind the share price rallies that this month sent the groups back into the FTSE 100. The latter has been propelled by a brighter outlook for consumer spending and ergo, advertising spending. Adjusted cash profits were a fifth lower in 2020, but came in ahead of expectations thanks to a rebound in fourth quarter advertising spend and cost cutting.
Investors have been encouraged further by the news that advertising revenue was 68 percent higher in April and forecast to increase by 85 per cent in May and up to 90 per cent in June, compared with the prior year. The start of smash dating series Love Island and the Euros tournament will provide a further boost.