ITV’s revenue slides 16% on a year over year basis in 2020
- ITV plc's revenue slides 16% on a year over year basis in 2020.
- The media firm reports £325 million of full-year pre-tax profit.
- ITV intends to restore dividend payment as soon as possible.
ITV plc (LON: ITV) reported a decline in its full-year pre-tax profit on Tuesday. The company acknowledged that the first two months of 2021 were rather challenging, but expressed confidence that advertising market was likely to pick up in March and April.
ITV shares, that you can easily trade online via apps, were reported about 2.5% down in premarket trading on Tuesday and tanked another 2% on market open. The stock, however, recovered the entire intraday loss later on. ITV is now trading at £1.24 per share, compared to £1.06 per share at the start of the year 2021.
ITV reports £325 million of full-year pre-tax profit
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ITV said that its pre-tax profit in 2020 came in at £325 million. In the previous year, it had posted £530 million of pre-tax profit. The FTSE 250 listed company generated £3.26 billion of total revenue last year that represents a 16% annualised decline.
The British firm saw an 11% year over year decline in advertising revenue while its full-year studious revenue tanked 25% in 2020. ITV was delisted from the FTSE 100 index last year in September, as the ongoing COVID-19 crisis wreaked havoc on its stock.
The Coronavirus pandemic has so far infected more than 4.2 million people in the United Kingdom and caused over 124 thousand deaths.
For the first quarter, ITV expects a close to 6% decline in total advertising revenue. The media firm, however, forecasts its ad revenue to climb by roughly 8% in March, and up to a massive 75% in April. In an announcement earlier this week, ITV expressed plans to double business with streaming platforms this year.
ITV intends to restore dividend payments as soon as possible
ITV further added on Tuesday that dividend payments will be restored as soon as circumstances improve. In its earlier report published in August 2020, the media company had registered a 93% decline in its pre-tax profit in fiscal H1.
Compared to 2019, the London-based company expects to deliver permanent overhead cost savings (annualised) of roughly £100 million by 2022. Its previous guidance was for the range of £55 million to £60 million.
ITV plc performed fairly downbeat in the stock market last year with an annual decline of close to 30%. At the time of writing, the British media company has a market cap of £5.02 billion and a price to earnings ratio of 16.64.