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ITV investors hopeful as easyJet boss grabs top job

The airlines' boss is due to take up the role at ITV in early 2018.
July 16, 2017

Carolyn McCall’s biography on the easyJet (EZJ) investor page proudly announces that under her tenure the airline has reached the landmark of carrying 70m passengers a year. ITV’s (ITV) shareholders will no doubt hope she can obtain similar customer numbers in her new role. Britain’s biggest commercial broadcaster has appointed Ms McCall as its new chief executive following Adam Crozier’s departure in June.

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The change at the top comes at a time of rising pressure in the media world. Demand for TV advertising space – at one time ITV’s biggest revenue contributor – has plummeted in recent years as companies turn increasingly to online ad platforms such as Google and Facebook. Mr Crozier has done his bit to leave the company in good shape in this time of uncertainty. During the past few years he has dramatically reduced the company's reliance on TV advertising by bulking up its portfolio of production companies and investing in the online ITV Hub.

But still the future looks uncertain. In May ITV predicted that net advertising revenue in the first half – the financial results of which are due to be announced next week – could fall by 9 per cent. Broker Numis expects 2017 pre-tax profits to drop 5 per cent to £805m due to that decline and the investment demands of running multiple production companies.   

But Ms McCall is no stranger to corporate challenges. Her first six months as the boss of easyJet saw airlines grounded due to a volcanic ash cloud, a massive spike in the oil price and an airline traffic controller strike. Today, with a market capitalisation of £5.7bn, easyJet is £4.1bn larger than when she joined in 2010.

Once disparagingly described as “a media luvvie” by Michael O’Leary, the boss of budget airline rival RyanAir, Ms McColl’s experience atop a major UK media company seems to have served her well in obtaining the ITV role. Before joining easyJet she was the chief executive at the Guardian Media Group and led the paper’s major rebranding in 2005. Her experience within the FTSE 100 is also enviable, having held a position on the board of Lloyds (LLOY), New Look and Tesco (TSCO).