Producing positive results, update due.Today 17:27
ITV said, on Thursday, it is still in “active” talks about potentially selling its Media & Entertainment unit to Sky, which is owned by Comcast, and reported solid first-quarter momentum.
The London broadcaster and content producer said total revenue rose slightly to £877 million from £875 million a year earlier, while external revenue increased to £766 million from £756 million.
Chief Executive Carolyn McCall said ITV’s strategy, growing ITV Studios and expanding its digital Media & Entertainment business has been producing positive results.
ITV Studios delivered 3.6% revenue growth to £400 million, while Media & Entertainment revenue declined 2.5% to £477 million. Digital revenue within M&E rose 12% to £149 million, but linear advertising revenue fell. Overall ITV advertising revenue dropped 1.7% to £416 million.
ITV reiterated it is in active discussions with Sky and will update the market later.
In November, ITV confirmed early-stage talks to sell the division to Sky in a deal valued at £1.6 billion, after reporting suggested Comcast was also in discussions to buy the business. The companies are seen as potentially combining ITV’s TV operations with Sky to build a stronger streaming presence in the UK.
For the full year, ITV said it remains on track and kept its guidance unchanged, expecting “good” revenue growth for ITV Studios, with margins at the lower end of 13%–15% and heavier weighting toward the second half for revenue, margin, and profit. For Media & Entertainment, ITV expects “strong” profitable digital revenue growth.
For the second quarter, ITV forecast total advertising revenue to be up about 10%, and about 4% higher in the first half, and expects a “strong July” supported by the men’s football World Cup.
Shares rose 2.4% to 79.57 pence by Thursday morning in London.
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