Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

ITV Shares Advance as Content Creation Attracts More Revenue

July 30 (Bloomberg) -- ITV Plc, owner of the U.K.’s biggest commercial TV station, rose the most in eight months after first-half earnings increased as the company focused on creating content and bought production assets.

Earnings before interest, taxes, amortization and exceptional items climbed 11 percent from a year earlier to 291 million pounds ($446 million), the London-based company said in a statement today. Revenue climbed 2.3 percent to 1.31 billion pounds, beating analysts’ average estimate of 1.15 billion pounds, according to data compiled by Bloomberg.

ITV, whose shows include “Downton Abbey” and “X Factor,” has been reducing its dependence on advertising by investing in content creation and acquiring production assets. Non-advertising revenue rose 11 percent in the first half to 568 million pounds, the broadcaster said.

“We’re making good progress with our strategy of growing and rebalancing the business as we build new revenue streams and improve margins,” Chief Executive Officer Adam Crozier said in today’s statement.

The shares rose as much as 6 percent, the biggest intraday advance since November, and were up 5 percent at 164.90 pence as of 9:41 a.m. in London. The stock has climbed 57 percent this year, giving the company a market value of 6.5 billion pounds.

ITV Studios

“We remain firm supporters of ITV, which is executing well on rebalancing the group by deploying cash flow into building ITV Studios, while we view it as a natural play on UK macro recovery,” Paul Richards, an analyst at Numis Securities who recommends adding the stock, wrote in a note today.

Net advertising sales from ITV Family declined 3 percent in the first half because of tough second-quarter comparatives, the broadcaster said today. The division should have “broadly flat” net advertising revenue for the nine months to the end of September 2013 after rising 9 percent in the third quarter.

Revenue at content-production arm ITV Studios increased by 11 percent to 395 million pounds, according to the statement.

ITV last week said it paid an initial 12.5 million pounds for Big Talk Productions, producer of films including “Shaun of the Dead” and TV series such as “Rev.”

To contact the reporter on this story: Kristen Schweizer in London at kschweizer1@bloomberg.net.

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.