ITV share price slides as broadcaster’s revenue dips in Q1

on May 10, 2017
Updated: Oct 21, 2019
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Shares in ITV (LON:ITV) have lost nearly one percent in London in early morning trade, as the blue-chip broadcaster revealed that its revenue had fallen in the first quarter of the year. The update comes after the company recently disclosed that its chief executive, who helped restore the group’s fortunes by reducing its reliance on advertising and expanding its production business, was set to step down later this year.

As of 08:12 BST, ITV’s share price had lost 0.99 percent to 198.81p, underperforming the broader UK market, with the benchmark FTSE 100 index currently 0.02 percent better off at 7,344.04 points. The group’s shares have lost more than eight percent of their value over the past year, and are down by some three percent in the year-to-date.
ITV announced in a statement this morning its total external revenue had dipped three percent year-on-year to £731 million in the three months ended March 31. The company noted that its first-quarter performance had been in line with expectations and that it was on track to deliver its full-year guidance, but warned that it expects its net advertising revenue to fall between eight and nine percent in the first half.

“ITV’s overall performance and the shape of the UK advertising market are very much as we anticipated and our guidance for the full year remains unchanged,” the group’s outgoing chief executive Adam Crozier commented in the statement.
Reuters quoted analysts at Citi as pointing out that while the first-quarter trading update was in line with their forecasts, the market’s consensus for the second quarter had been more positive.
The update comes after ITV announced earlier this month that Crozier was set to step down after seven years at the helm of the blue-chip broadcaster. The company assured investors that it had a ‘well-developed’ succession plan in place, with a successor to be announced in due course.
As of 08:17 BST, Wednesday, 10 May, ITV plc share price is 198.40p.

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