RE: Theories galore31 Jul 2021 14:02
I tend to concur with this analysis, and hence the lack of support for the SP. Nevertheless, I'm holding.
AJ Bell: ITV numbers are good but are they sustainable?
Bullish results from ITV (ITV) were no surprise as the economy reopens but AJ Bell says investors should be aware the longer-term picture for the broadcaster is less certain.
ITV saw advertising revenues rebound on the back of the Euro 2020 tournament and lockdown restrictions easing, pushing it to its largest ever June revenue.
Analyst Danni Hewson said this wasn’t a surprise given the economic reopening was ‘a natural driver for companies to increase advertising’.
‘This is fine now, but ITV’s position longer term remains uncertain. There is a structural shift of advertising away from TV and towards online channels,’ she said.
Hewson added there was a risk that the June figures were a ‘one-off event’, and streaming and on-demand will continue to be the winners. ‘That places even more pressure on ITV to come up with must-watch shows. As such, it will have to plough significant amounts of money into the studios arm to enrich its content.’
The shares closed down 1.3%, or 1.6p, at 118p on Wednesday.