“I’m an ITV Shareholder… Get Me Out of Here!” quipped one below-the-line commenter in a recent Financial Times article on ITV’s (ITV) third-quarter results. You can see where they are coming from. The entertainment company had just reported a 14 per cent drop in advertising sales, flat viewing figures, and a growing inflation problem.
- Strong production business
- Lowly valuation
- New streaming service
- Languishing ad sales
- Slow to modernise
- Powerful TV rivals
The trading update is the latest twist in an underwhelming plot. Even before Covid-19 hit, ITV’s advertising revenue had begun to stagnate and the media and entertainment division was struggling to grow its profits. Meanwhile, the broadcaster’s reach – defined as the proportion of people aged four and above who watched at least 15 minutes of ITV a week – had fallen from 60 per cent in 2016 to 48 per cent in 2021, with younger viewers proving particularly elusive.