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https://www.fool.co.uk/investing/2018/11/20/has-there-ever-been-a-better-time-to-buy-the-itv-share-price/

Has there ever been a better time to buy the ITV share price?

Back in September, I explained why I’d buy ITV (LSE: ITV) for a dividend portfolio. Today, I want to revisit the shares. I’m also going to take a look at another company I think could be a long-term cash machine.

Why I love “I’m a celebrity…”

Whatever you think of ITV’s hit series I’m a Celebrity… Get Me Out of Here, the show is a good example of the company’s successful business model.

In addition to regular advertising revenue, this show generates income from phone-in votes, competitions and brand sponsorships. The whole formula is then sold to television networks in other countries. According to the I’m a Celebrity… Wikipedia page, the show has been licenced to countries including the US, Germany, France and Australia.

This approach has been used for most of ITV’s reality series in recent years. Alongside this, the ITV Studio business has also focused on producing popular drama series, which can be sold in overseas markets.

What’s new?

Newish boss Dame Carolyn McCall wants to extend the broadcaster’s reach and improve revenue per viewer. One part of this plan is the ITV Hub online viewing service.

ITV Hub viewing time rose by 37% during the first nine months of the year. The company says that 75% of the UK’s 16-24 year-olds have registered for this service — viewers who increasingly shun scheduled television, but spend much of their time (and money) online.

I’d keep buying

I haven’t yet found space in my portfolio for ITV, but I’m hoping to do so soon. This business generated an operating margin of 18% last year, and a return on capital employed of nearly 27%.

Given this, I think the stock’s forecast price/earnings ratio of 10, and 5.5% dividend yield, are simply too cheap. I remain a buyer.

I’ve also read that Liberty will concentrate on the UK once they have sold off its European assets to Vodafone. Whatever that means, who knows? I may be grasping at straws, however I won’t rule anything out just yet.

When is sentiment going to change with this share?

Yet again this share price is up for most of the day, only for it to fall down at the end of the day. We could do with Brexit being sorted out for some stability in the SP. Or step forward Mr. Malone.

Holly Willoughby is easy on the eyes though.

BT share dropped 1.80p at 16.30pm to close at 16.35pm down to the falling ADR price. Disappointing to say the least.

Yesterday Prime Minister Theresa May was asked this question countless times. Is the Brexit deal on offer a better deal than staying in the EU. She wouldn’t give an answer, that say’s it all really.

“ITV is ripe for an opportunistic bid at current SP of 148p ( Market Cap of £6b)
and McCall is fully aware of this imho.”

Dallo,

Yes with market uncertainty over Brexit there may never be a better time to bid for ITV with such a weak share price at 147p. A bid in the region of 200p to 220p may be acceptable by shareholders, although this may not be acceptable with the board of directors. I think that Liberty Global will wait on aquiring regulatory approval from the sale of assets to Vodafone before they make a move for ITV, this could be within the next 6 months, unless someone else makes a move first.

I’ve topped up today in ITV and intend topping up again if we see further share price weakness.

Dallo,

Ok thanks, much appreciated.

Dallo,

Do you have a link regarding the comments made by McCall? Thanks.

It's probably down to potential Brexit deal…..Or could it be takeover speculation?

14 Nov, 10:22 GMT 156.60 GBX +6.05 (4.02%)

Christmas ad spending 'to hit new high'

https://www.bbc.co.uk/news/business-46191733

A nice 3% spike over in the USA.

Nokesa,

IMHO, Liberty Global will wait on aquiring regulatory approval from the sale of assets to Vodafone before they make a move for ITV, this could be within the next 6 months, unless someone else makes a move first.

“The acquisition is subject to regulatory approval, which may become a drawn-out affair due to potential pushbacks by local rivals which may argue over the combined businesses' strength and reach. However, Vodafone and Liberty
Global aim to complete the deal by the middle of 2019.

A breakup fee of €250 million, payable by Vodafone, has been agreed should the purchase fail.”

https://www.zdnet.com/article/vodafone-to-acquire-liberty-global-assets-in-21-8-billion-deal/

Liberty Global is scaling back on continent to focus on U.K.

https://www.bloomberg.com/news/articles/2018-11-07/liberty-global-is-said-to-prepare-sale-of-satellite-tv-business

ITV in discussions over contingent asset deal

ITV is in discussions with its pension scheme trustees over the potential sale of London Television Centre, which was pledged to the scheme as a contingent asset in 2014.

In a third-quarter trading statement published yesterday, the UK broadcaster said it was negotiating with trustees of the £3.9bn (€4.5bn) scheme regarding the provision of a “suitable equivalent asset”.

“The proceeds of the sale of the South Bank site could be used to replace the £50m asset security and to reduce ITV’s net debt position,” the company stated.

ITV also reported a net surplus of £9m for its defined benefit (DB) arrangements as of 30 September. This marked a £77m fall in the surplus from the end of June.

https://www.ipe.com/countries/uk/uk-roundup-itv-in-discussions-over-contingent-asset-deal/10027781.article

To be fair Dallo, the article was reported yesterday 7 Nov. However, you are of the same mind has the analyst. Lets hope that you are proved right.

I would agree with the analyst that Liberty is the most likely candidate to make a bid with them already owning 10% of ITV. If Liberty doesn’t make a move once they receive the cash from Vodafone they never will.

Solley, yes the lower the share price goes the more attractive ITV become.

"don,t invest more than you can completely afford to lose"

I wouldn’t mind betting that 99% of us risk more money than we can afford to lose.

https://www.proactiveinvestors.co.uk/companies/news/208740/itv-takeover-offer-wouldnt-be-surprising-at-current-valuation-says-analyst-208740.html

ITV takeover offer “wouldn’t be surprising” at current valuation, says analyst

The broadcaster's content library means it has a bundle of assets that could place it in high demand as competition drives consolidation in the media and telecoms markets

Media analyst at City broker Shore Capital, Roddy Davidson, said it “wouldn’t be surprising” if ITV PLC (LON:ITV) received a takeover approach at its current valuation level.

Shares in the FTSE 100 broadcaster were among the worst performers in the index at lunchtime, dropping 5% to 146.5p after it said TV advertising revenue was “softening” in the fourth quarter amid an uncertain economic environment.

READ: ITV weak as it expects softening in fourth quarter advertising, although nine-month performance in line

With the traditional revenue streams seemingly being buffeted by the twin storms of Brexit and the shift to online, many will be wondering what the next move will be for chief executive Carolyn McCall and her recently-appointed chief financial officer Chris Kennedy.

New CFO to stave off takeover?

Kennedy previously served under McCall at budget airliner easyJet PLC (LON:EZJ) between 2010 and 2015, during which time the pair helped propel the firm to the FTSE 100 and quadruple its share price.

Given the impressive record, McCall may be hoping that the two of them can perform a similar turnaround for ITV amid rumours it could be the target for content-hungry conglomerates.

However, Davidson doesn’t think the appointment is linked to a possible takeover.

“They’ve got a highly qualified, appropriate looking successor which will be good for the business on an ongoing basis,” he says, adding that ITV being taken over will be more to do with competition that is driving consolidation in the media and telecoms sectors.

Interest from across the pond

While UK entities like telecoms giant BT Group PLC (LON:BT.A) may be hankering after ITV’s content creation arm, Davidson says offers may be more likely to come from US players.

He cites US-listed Liberty Global (NASDAQ:LBTYA), which already holds a 10% stake in ITV, as having a “starting point if they wish to make a move”.

Sky 2.0?

Does this mean another Sky-esque bidding war could be in the offing?

“ITV has a sizeable international content library … and [the Sky auction] showed that those types of assets are heavily in demand,” Davidson says.

“If someone does make a bid, it’s probably going to trigger other interest.”