ITV share price: Broadcaster posts strong start to year

on May 14, 2015
Updated: Oct 21, 2019
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ITV plc (LON:ITV) has this morning unveiled a strong start to the current financial year, posting a 14-percent surge in revenue. ITV’s share price, however, has failed to take off, with the company also posting a drop in viewing numbers.

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As of 08:10 BST, ITV’s shares had lost 2.67 percent to 253.05p, underperforming the FTSE 100 index which has slipped about 0.8 percent into the red so far this morning. The shares have added some 45 percent over the past year.
ITV said in a statement that its total external revenue had jumped 14 percent year-on-year during the first quarter to £665 million. Broadcast and online revenue surged 10 percent to £530 million, while ITV Studios saw revenues rise by 17 percent to £224 million.
Commenting on the results, the company’s chief executive Adam Crozier said that ITV “had a strong start to the year with further growth across all parts of the business”. He added that the broadcaster expected its net advertising revenue to rise five percent in the first half of the current year.
The blue-chip company, however, reported a fall in its share of viewing (SOV), revealing that ITV Family’s SOV had dropped three percent year-on-year in the four months to April 30. Crozier noted that improving SOV remained ‘a key focus’ for the year.
ITV’s results come with workers, journalists and other staff staging a 24-hour strike in a dispute over pay. Members of the technicians’ union Bectu and the National Union of Journalists voted in favour of industrial action in protest over a two-percent pay award. Unions have been pressing for a bigger wage increase given the broadcaster’s profits. The strike will coincide with ITV’s annual general meeting today and will affect TV programmes.
As of 09:02 BST, Thursday, 14 May, ITV plc share price is 255.45p.

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