As ITV reports on its first quarter, Graham Spooner, investment research analyst at The Share Centre, explains what they mean for investors.
This morning, ITV’s first quarter results gave some good news to investors. In light of the journalist strikes which may overshadow the figures, the television broadcaster posted a rise in revenue.
Although viewing numbers continue to fall, revenue from external sources in the first three months rose 14% year-on-year to £665 million, whilst revenue from ITV studios rose 17% to £224m. Investors will be pleased that advertising revenue from the broadcaster’s main channels is also up around 5% for the first half of the year.
Chief executive Adam Crozier commented “We’ve had a strong start to the year with growth across all parts of the business” which speaks volumes in the results which were ahead of previous guidance.
With recent signs of improving outlook for advertising and a management confidence in the year ahead, we recommend ITV as a ‘buy’ for medium risk investors seeking growth.
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