Proactive Investors11 Nov 2020 14:18
Ahead of results tomorrow;
ITV PLC (LON:ITV) releasing its next trading update on Thursday which should see investors focus on advertising spend, which fell 43% in the second quarter.
UBS forecasts a 15% fall in total advertising revenue in the third quarter after August and September saw trading improve supported by the auto industry, government, retail and fast-moving consumer goods.
The question is whether more traditional advertising environs, such as corporate advertising spend, have been recovering since online has been doing better recently. The figures are expected to be difficult, considering the broadcast company can not afford huge cash burns if conditions remain challenging going into 2021.
“We are more hopeful about the performance of ITV’s Studios business, which produces both scripted and unscripted content for ITV and third party broadcasters at home and abroad,” analysts at Hargreaves Lansdown commented.
“While the first lockdown meant many productions were put on hold, we suspect it will also have seen viewers burn through back-catalogue material, increasing demand for new content. ITV will be hoping that boosts activity going forwards.”