Shares in ITV (LON:ITV) have fallen deep into the red in today’s session, as the company updated investors on its full-year performance, sounding a note of caution on advertising revenues in the first four months of the year. The company further announced that it was in talks with the BBC over a new streaming service.
As of 09:28 GMT, ITV’s share price had given up 3.16 percent to 127.15p. The shares are underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.72 percent lower at 7,099.30 points.
ITV posts full-year results
ITV announced in a statement today that its total external revenue had climbed three percent to £3.21 billion last year. Adjusted EBITA meanwhile fell four percent to £810 million, and earnings per share came in four percent lower at 15.4p.
The blue-chip broadcaster cautioned that economic and political uncertainty continued to impact the demand for advertising, with total advertising forecast to be between three percent and four percent for the first four months in the new year, while first-half revenue and profits are set to be impacted by tough comparatives against the revenues of the Football World Cup.
Proactive Investors quoted Richard Hunter, analyst at Interactive Investor, as commenting that the group “has a strategy which is delivering the required results, even though in the very near term the company’s own outlook is more guarded”.
“The inevitable culprit is Brexit, as advertisers become less willing to commit to an expensive, yet usually successful, outlay,” the analyst pointed out.
BritBox streaming service
ITV also announced that it was in the concluding phase of talks with the BBC to establish a strategic partnership to bring streaming service BritBox to UK audiences. Reuters quoted BBC Director General Tony Hall as commenting that the new service would deliver home-grown content to the audience that loved it best.
“The service will have everything from old favourites to recent shows and brand new commissions,” he said, adding that research had shown that viewers embraced streaming and would be willing to add the service to current subscriptions, such as Netflix, Amazon Prime and Sky.
As of 10:14 GMT, Wednesday, 27 February, ITV plc share price is 127.15p.