ITV (LON:ITV) Issues Earnings Results

ITV (LON:ITVGet Free Report) announced its earnings results on Friday. The broadcaster reported GBX 2.20 earnings per share for the quarter, Digital Look Earnings reports. ITV had a net margin of 7.28% and a return on equity of 11.42%.

Here are the key takeaways from ITV’s conference call:

  • Positive Sentiment: ITV reported solid H1 results and maintained full-year guidance, including good Studios revenue growth and strong, profitable digital revenue growth in Media & Entertainment.
  • Positive Sentiment: ITVX viewing increased 27% and digital revenue rose 13% to £307 million, supported by the World Cup and growing adoption of targeted advertising through Planet V.
  • Positive Sentiment: The planned sale of Media & Entertainment to Sky is expected to generate a £950 million net cash return to shareholders, with ITV also launching a £100 million share buyback over the next nine to 12 months.
  • Neutral Sentiment: ITV Studios revenue grew 2% to £912 million, while EBITDA fell 9% to £97 million; management expects stronger second-half deliveries and full-year margins at the lower end of its 13%–15% target range.
  • Negative Sentiment: Management expects Q3 total advertising revenue to decline around 5%, citing macroeconomic uncertainty and potential budget shifts following the World Cup, while Q4 visibility remains limited.

ITV Price Performance

Shares of ITV stock opened at GBX 74.25 on Friday. The stock has a market cap of £2.78 billion, a P/E ratio of 12.80, a P/E/G ratio of -0.53 and a beta of 0.82. The company has a debt-to-equity ratio of 48.72, a quick ratio of 0.83 and a current ratio of 1.23. The stock’s fifty day moving average is GBX 78.69 and its 200 day moving average is GBX 79.55. ITV has a one year low of GBX 65.70 and a one year high of GBX 87.35.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the company. JPMorgan Chase & Co. cut ITV to a “neutral” rating and reduced their price objective for the company from GBX 104 to GBX 85 in a research report on Tuesday, July 7th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a GBX 90 price target on shares of ITV in a research report on Friday, May 15th. Two research analysts have rated the stock with a Hold rating, According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of GBX 87.50.

View Our Latest Research Report on ITV

ITV announced that its board has approved a stock repurchase program on Friday, July 31st that authorizes the company to repurchase 0 shares. This repurchase authorization authorizes the broadcaster to repurchase shares of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other ITV news, insider Chris Kennedy sold 396,282 shares of the company’s stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of GBX 78, for a total value of £309,099.96. Also, insider Carolyn McCall sold 652,363 shares of the firm’s stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of GBX 78, for a total value of £508,843.14. Insiders own 0.53% of the company’s stock.

ITV Company Profile

(Get Free Report)

ITV is a producer, streamer and broadcaster, consisting of ITV Studios and Media & Entertainment (M&E).

ITV Studios is a scaled global creator, owner and distributor of high-quality TV content, producing some of the most successful shows in the world. It operates in 13 countries, across 60+ labels and is diversified by genre, geography and customer in the key creative markets around the world.

Media & Entertainment is the largest commercial streamer and broadcaster. Through M&E, we make brilliant British-focused content available on ITVX – our free, advertiser-funded streaming service – alongside our free-to-air linear TV channels.

See Also

Earnings History for ITV (LON:ITV)

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