ITV signals uptick within advertising

● Decline in net ad revenues eases but analysts point to challenging market

Analysts at Liberum said: “These roughly stable revenues show that broadcasters are now higher quality companies that do not only rely on TV advertising revenues but also have other sources of revenue that can be high margin and offset any decline in TV ad revenues.”

ITV’S audience figures showed the group’s share of viewing for the ITV “family” of channels remained flat at 34.2 million in the nine months. The group also highlighted its “strong balance sheet and healthy liquidity” as it continues to invest across the business.

George Salmon, equity analyst at financial services company Hargreaves Lansdown, noted that while the advertising market remained challenging, the studios business was growing steadily.

He said: “Ad spending tends to rise and fall with the economic tide, and with concerns over Brexit and the UK economy high up on the agenda in many boardrooms, we’re in a bit of a lull. In normal circumstances this wouldn’t be a great issue, however one has to wonder whether changes to how and when we watch content mean ITV will no longer be top dog when confidence comes back… Netflix and Amazon are putting the pressure on in a big way,” Salmon added.