ITV gives out wrong signals as shares dive

Market report Scott Reid

Investors piled out of ITV after the broadcasting giant suffered a double-whammy hit of falling profits and sliding advertising revenues.

Shares in the group closed down 7.6 per cent, or 13.2p, at 160p, with the blue-chip heavyweight dragging on the wider FTSE 100 Index, which tumbled 50.54 points to 7,231.91.

ITV booked pre-tax profits of £800 million last year, down from £847m in 2016, after advertising sales fell 5 per cent to £1.6 billion.

New boss Carolyn Mccall, who took on the top job in January after seven years at the controls of Easyjet, praised a strong performance in difficult conditions and said a “strategic refresh” was under way.

Across Europe, Germany’s Dax and the Cac 40 in France both drifted 0.4 per cent lower. On the currency markets, a fresh bout of Brexit uncertainty and the strengthening of the dollar took its toll on the pound.

Supermarket major Tesco was among the biggest top-flight risers after being given the green light from shareholders for its £3.7 billion takeover of wholesaler Booker. Shares in Britain’s biggest supermarket group were up 3.7p to 210.8p, with investors in Tesco and Booker voting through the tie-up at separate meetings yesterday.

Other risers on the FTSE 100 were St James’s Place ,up29p to 1,154.5p, International Consolidated Airlines Group ,up 11.2p to 614.6p ,and Shire ,up55p to 3,109p. Tesco has been given the green light for its £3.7 billion takeover of wholesaler Booker after investors in both firms approved the deal. The broadcasting giant posted a 6 per cent fall in fullyear profits after a “challenging” 2017, but said advertising sales are bouncing back.