ITV (LON:ITV) is expected to unveil a rise in revenue and operating profit and a fall in net income when it updates investors on its performance on Wednesday, IG reports. Investors will also eye an update on the expected Brexit impact on the group’s fortunes.
ITV’s share price rose in the previous session, adding 0.49 percent to 133.95p, outperforming the broader UK market, with the benchmark FTSE 100 index inching 0.16 percent higher to end trading at 7,178.60 points. The group’s shares have lost more than 21 percent of their value over the past year, as compared with about a one-percent drop in the Footsie.
ITV results preview
IG reports that according to a Bloomberg-compiled consensus, analysts expect ITV’s revenue and operating profit to have improved last year, but have also forecast a 6.6-percent drop in adjusted net income. Revenue is expected to come in at £3.21 billion, up from £3.13 billion, while EBITDA is flagged at £823.6 million, compared with £810 million in the prior-year period.
The results will come after the blue-chip broadcaster announced in November that it was expecting its total advertising to be down around three percent in the fourth quarter and broadly flat over the full year.
The Times meanwhile reports that with some analysts are forecasting a 20-percent drop in in ITV’s advertising revenues in March, the month that Britain is due to leave the European Union, the company is expected to highlight the problem at its full-year results.
Analyst ratings update
The 16 analysts offering 12-month price targets for ITV for the Financial Times have a median target of 150.00p on the shares, with a high estimate of 260.00p and a low estimate of 110.00p. As of February 23, the consensus forecast amongst 20 polled investment analysts covering the blue-chip broadcaster has it that the company will outperform the market.
As of 08:17 GMT, Monday, 25 February, ITV plc share price is 133.95p.