Shares Mag today14 Apr 2022 09:50
Big article on ITV in shares mag today. It's closing paragraphs are;
The macroeconomic outlook for advertising has turned negative given the current geopolitical uncertainties linked to Russia’s invasion of Ukraine, coupled with global input costs, supply chain issues and concerns about consumer spending. This is a potential concern for ITV given its high degree of sensitivity to a slowdown in demand for advertising.
Consumers are likely to reduce their levels of consumption to accommodate their squeezed finances. UK economic growth is likely to slow as consumption accounts for approximately 68% of growth. Under this scenario the impact on demand for television advertising demand and ITV’s earnings would be negative.
There is a reason why ITV’s shares are so cheap, trading on a mere 5.5 times forward earnings with a 6% dividend yield. This low valuation reflects its struggle for relevance in a digital world and the longer-term structural challenges facing the company.
Looks like a long-term challenge unless they receive a bid IMHO. GLA