Broadcasting and advertising may be two tough industries, but ITV (ITV) is bucking the trends. Net advertising revenues ticked up slightly at the group in the first three months of 2018 thanks to strong demand for online ad spots, while 11 per cent growth in the studios business dragged overall group revenues up 5 per cent.
It is particularly reassuring to note ITV’s declining reliance on the uncertain ad market. Its studios business now contributes 42 per cent of the group’s top line while adjusted operating profits are expected to pass £250m in 2018 according to broker Numis, that’s in spite of heavy investment in new programmes.
ITV’s investors also have reason to cheer Vodafone’s purchase of Liberty Global’s European assets. The latter company is ITV’s biggest shareholder and there has been some speculation that it may be upping its investment in the UK which could involve building its stake in ITV or even making a bid for the entire company.
