Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
ITV unveils new celebrity Jaws reality show with actual sharks
The premiere is set to coincide with the 50th anniversary of the Spielberg film.
https://www.digitalspy.com/tv/reality-tv/a60058272/itv-jaws-reality-show-sharks/
“In a quiet but significant move, ITV has pulled the plug on its ITV Catchup channel on Amazon’s Prime Video“
https://www.cordbusters.co.uk/itv-catchup-axed-prime-video/
Https://uk.finance.yahoo.com/news/3-ftse-250-stocks-consider-060000658.html
Sale achieves net £253m
We don’t know what prices the buyback tranches will be at but let’s go with all at 65p a share for now.
That cancels 361.5m shares.
ITV shareholder page states:
“The Company’s issued share capital is 4,025,409,194 ordinary shares”
So should leave around 3.663 billion shares to share the same dividend pot - ie approx 9% more per share all things being equal.
ITV currently pays 1.7p interim and 3.3p final total 5p for year.
Therefore I’m going to stick my neck out and say final dividend may be increased by at least 0.5p to 3.8p (total 5.5p for year).
It’s not often a company can sell an asset that everybody has forgotten about - which generates 10% of the market cap!
Just underlines how unrealistic the market cap is. And with the buyback - this will cancel a lot of shares. Think it’s roughly just over 4 billion in issue currently - so should take it well under that amount.
And I agree with most posters - sends a message the dividend is safe / covered - which takes a concern away.
Only going in one direction from my point of view - not selling!
You may be right, but there’s also the hood old ‘time in the market is more important than timing the market’.
Most people can’t watch markets constantly and are bad at choosing optimal entries and exits. Sometimes hold and forget pays - especially if you are a long term holder not a dipper looking for a quick buck.
It can feel like that sometimes with ITV… :)
Market reaction on Results Day:
Dividend Maintained = SELL (Its never going to grow!)
Dividend Reduced = SELL (It’s going to zero!)
Dividend Increased = SELL (they can’t afford it!)
It feels like the only way it would be considered BUY is if ITV announced they have discovered oil under one of their properties… and then people would start moaning about oil industry regulations and decarbonisation…!
Thick skin needed with this share.
Yesterday’s Telegraph article below mentions that ITV will be more attractive once it renews its Channel 3 licence for another decade. Here’s what that’s all about from OFCOM:
https://www.ofcom.org.uk/tv-radio-and-on-demand/information-for-industry/psb/channel-3-and-channel-5-relicensing
The Telegraph
James Warrington
12 February 2024 • 7:27pm
Mayfair fund takes 5pc stake in ITV as advertising downturn sends shares tumbling
Move makes Silchester International Investors one of the broadcaster's largest shareholders
A Mayfair fund has taken a £120m stake in ITV as the broadcaster grapples with a deep advertising downturn and slump in its market value.
Silchester International Investors has become one of ITV’s largest shareholders after snapping up a 5pc stake in the business.
The media-shy fund, which has also built a £500m stake in advertising giant WPP, states that its investment philosophy is to identify fairly valued businesses “capable of increasing earnings, assets and dividends by their own efforts”.
Its investment in ITV makes it one of the broadcaster’s top five shareholders.
The stake building is likely to stoke speculation about a potential sale or break-up of the public service broadcaster as it battles a sharp decline in advertising that has wreaked havoc across the TV sector.
Dame Carolyn McCall, chief executive of ITV, has described the downturn as the worst since the financial crisis, with ad revenues expected to fall by 8pc across 2023.
Dame Carolyn McCall, chief executive of ITV,
ITV boss Dame Carolyn McCall has warned the current downturn in the advertising market is the worst since 2008 Credit: Anthony Harvey/Getty Images
Shares in ITV, which is best known for programmes including I’m A Celebrity… Get Me Out of Here and Love Island, are down by more than 55pc over the last five years and are trading close to their lowest level since the financial crisis.
This has left the broadcaster with a market value of under £2.4bn, well below its peak of more than £11bn in 2015.
The dwindling valuation, coupled with broader concerns about the future of traditional TV in the streaming era, have fuelled speculation that ITV could become a takeover target.
Analysts said the upcoming renewal of ITV’s channel three licence, which will guarantee its status as a public service broadcaster for the next decade, would provide added certainty to any potential bidder.
Alex DeGroote, a media analyst, said ITV was “just ripe for a break-up or sale”.
Just a reminder what you have invested in - a business creating in-demand content in 13 countries, through 60 production companies).
(This site is for content buyers not the general public).
https://catalogue.itvstudios.com/home
… “ITV Studios is expanding steadily in the US market“ …
https://uk.finance.yahoo.com/news/itv-isn-t-just-broadcaster-122153979.html
True story: Lloyds of London used to insure WWTBAM and they were sued by the Goshawk Syndicate of brokers for making the questions too easy!
https://www.latimes.com/archives/la-xpm-2000-feb-20-mn-751-story.html
Perhaps Tom filters me out, or just chooses to ignore my factual post.
But just to correct him - “Would love to see a breakdown of advertising revenue vs prize money paid out”
That wouldn’t make sense as ITV don’t ‘pay out’ prizes - insurance companies do.
The TV show budget just pays an insurance premium.
Companies like this actually make the payout:
https://worldwidespecialrisks.co.uk/tv-radio-and-print-media-promotional-insurance/
Nice to see Warner Bros. Discovery, ITVX and Banijay all working happily together on programming. :)
https://tbivision.com/2024/01/04/news-round-up-wbd-itvx-bring-back-bean-itv-returns-stand-up-sketch-show-uktv-extends-special-ops-series/#close-modal
Is that the going rate? Seems kinda low…!
https://itvjobs.referrals.selectminds.com/jobs/assistant-producer-this-morning-itv-studios-daytime-3507
Stephen Mulhern seems busy!
https://www.itv.com/presscentre/media-releases/itv-confirms-its-24-2024
True but a decade ago there was a lot less choice for viewers eyeballs - Netflix had only launched in the UK the previous year.
And broadcast business aside, ITV Studios has grown a lot in the the last decade - even making programmes for Netflix now!
But also lifted from the BBC on 22/12 - Google Trends - ITVX :
https://www.bbc.co.uk/news/uk-england-67718159.amp
“… Since its launch, ITVX has had over 2.7 billion streams and more than 40 million registered users.
It's no wonder then that 'ITVX' searches increased 300% this year compared to 2022. Love Island was streamed 340 million times …”