Shares in ITV (LON:ITV) have posted a hefty fall in London this morning, as the blue-chip broadcaster delivered a drop in full-year earnings and disclosed that its advertising revenue had been impacted by the ‘uncertain economic environment’. The update comes after former easyJet (LON:EZJ) chief executive Carolyn McCall recently took the helm at the company.
As of 08:41 GMT, ITV’s share price had given up 6.96 percent to 161.15p. The shares are underperforming the broad UK market, with the benchmark FTSE 100 index currently standing 0.27 percent in the red at 7,262.71 points.
ITV posts full-year results
ITV announced in a statement this morning that its adjusted earnings before interest, taxes and amortisation had fallen five percent to £842 million in the year ended December 31, 2017, as compared with £885 million in the prior-year period, while the company’s adjusted earnings per share came in six percent lower at 16p. ITV’s total external revenue meanwhile rose two percent to £3.13 billion, dragged down by a five-percent fall in net advertising revenue due to the uncertain economic environment.
“There is no doubt that ITV’s operational performance in 2017 in a challenging environment was strong,” the group’s new chief executive Carolyn McCall commented in the statement, adding that the company was ‘very focused’ on its ‘strategic refresh’.
Group expects World Cup boost
McCall meanwhile pointed out that ITV had had ‘a great start to 2018,’ and that the company was expecting positive net advertising revenue in the first half “with Q1 up one percent and growth in Q2 around the football”.
The World Cup, however, is also expected to result in an increase to ITV’s scheduling costs which are forecast to come in between £1.055 billion and £1.060 billion, marking an increase of £30 million and weighted towards the first half of the year.