Yeah, does sound like we are on the same page. The risk is the advertising revenue coming in long-term as viewers switch. If I was the CEO I would try and drive more live sporting events, people want to watch live and also interactive shows (think quizzes or game shows with people using phones/tablets to get involved). I think ITV will not disappear, maybe it will continue to lose overall audience, but I still suspect the majority of households someone comes in from work and put on the TV, normally starting on ITV or BBC and then decides if to watch Netflix or Skysports / whatever, often if nothing else is on.
Hi Wigan I believe you are mistaken in your facts, although perhaps not the underlying point. The advertising side makes good profits, when NAR drops so does the overall profit that ITV makes (it appears that costs on this side are largely fixed). The studio business bring in roughly the same amount of turnover as the traditional side of the business but makes a much lower profit. The risk for sure is if this model is slowly dying out and are ITV moving enough to mitigate against this. The plus is that this does generate cash (profit unlike Netflix's massive losses but really good future prospects) and can keep paying dividend. I would love to see ITV produce a real blockbuster of a series, one with worldwide appeal (GoT or Walking Dead type) and see what happens to the shares then. All in my opinion obviously! :)
Thanks for your message Tom I am a long time reader and current holder of ITV, I didn't buy yesterday, but not because of what you or Norab said. Actually prefer alternative views to mine as I often think these allow me to learn from someone else's viewpoint and improves my all-round understanding (which I outlined yesterday). You are obviously emotionally and actually invested in ITV and there is nothing wrong with you expressing a positive opinion. I try and apply a balance to both positive and negative sentiment and hopefully come up with what I think is the right answer. thanks again
I agree viewing habits have changed but ITV can be part of that through the hub and other oot interests in other countries. However, in my experience a lot of this content is streamed as a top-up to standard TV. Plus as an advertiser only ITV gives you the 5m+ commercial audiences. You are right though we are seeing a move away from traditional viewing. The other side is that ITV is moving more and more to production, this has the potential to give the tech companies what they are really looking for 'the killer app' TV program.
Thanks for your comments Norrab - appreciated. So would you say that your only/your major concern is that there will be a continued fall away in TV advertising? If not, what are your other concerns? My thinking is this does look cheap with good divi coverage and good PE multiplier. I personally (although could be wrong), don't see TV advertising disappearing in the medium/long term - although accept it will be pressed by new mediums.
Thanks for coming back Tom. Guess that you are also not 100% convinced this is cheap, hence your advice. Appreciate no one can ever truly know where the bottom is though. Will have a think, if I am investing seems a shame not to take the divi, as I do think this is a strong company, generating cash who are diversifying away from reliance on NAR in a sector that has experienced a lot of consolidation. I suppose I have a week! :)
Tempted to buy in again myself, but not convinced this has stopped falling. Any advice, for or against would be appreciated. :)
Capita will publish a five-year transformation plan and details of a rights issue with its annual results on April 26, a person familiar with the matter said..... . . The above text is from Reuters, why use the phrase 'a person close to the matter', weird. Surely a company insider, or an individual close to the company would around more professional.
Maybe Ant, as one of the most respected ITV stars, has shorted the share just before he 'self-destructed'? . . Obviously only joking, but do think that Ant, like many similar to him, has a disease that crosses fame and money, even if these can contribute to the individuals fall. Not at all condoning him drink driving, gets all he deserves.
That's what the daily mail article says, the lower from the sky bid may turn attention to ITV. It also mentions sky foothold in Germany and Italy. Which may be a benefit for ITV holders as they own production companies in these regions. Enhance the subscription hub option across Europe, make it cheap enough with original content, and you are a net flix / Amazon challenger. All the foundations are in place, with the advantage that you already make cash profit....
ITV boss Dame Carolyn McCall is this week expected to herald a bounce in the television advertising market. The broadcaster suffered a fall of about 5% in TV ad sales last year as companies trimmed their budgets in the wake of a slowdown in the economy. But its viewing figures for this year will be bolstered by hit shows such as Dancing on Ice and the World Cup in Russia. McCall took charge last month after seven years running easyJet. In the spring she is expected to unveil a new plan to fight back against Netflix and Amazon Prime. ITV is forecast to deliver annual underlying profits of about £840m — in line with its 2016 surplus.
The idea is that the private sector can do outsourcing cheaper than the state. Can also be more innovative and through these efficiencies can win business in similar areas. I have seen outsourcing done really well, have also seen examples of this has been terrible. Read an earlier post where it perhaps was just a case of winning the contract and watching the money roll in. Outsources are a lot more diligent now, wanting shorter contracts and penalties for non-delivery. Companies have not moved with the times on this. FWIW, I do think there is a solid core of a company with Capita, but it does quickly need to get back on track. Not discounting further bad news but long term should not be another Carillion (no losses have ever been announced have they?) all imo. DYOR
Perhaps dropped after the broker re-rate of target price. Should be no significant financial announcement until YE results (unless it is negative / relates to sale), so SP will just keep ticking along until then. Hopefully new CEO can start making plans to make the business a bit more dynamic.
Thanks TLW I understand that the CEO is to consider selling further parts of the company to bring debt into line and concentrate on the core business. This is a 12 year low SP, but FCF has held up well and turnover is still pretty good at 6 month levels (presume will show reduction at full year due to CAS sale)*. *albeit from a very amateur investor! :)
appreciate they has been bad news recently (and a fair few unknowns), but then the share price fell and crucially had resistance at £4. This now seems to have gone and we are on a downward trend despite a contract win. Anyone have any idea why?
Been mentioned earlier about a trading update. Have had a look online and cannot see anything. Has anyone any ideas when this could be? Thanks
Seems to now be happy at going over 1.8, will it keep going on run up to ex divided date?
To be announced on 7th September. Here's hoping it is as per previous guidance.
Thanks Daisy. Anyone know the actual date.
Could well be before my eyes and I can see that last year was 1st September, but can anyone confirm when the full year results are due this year please? TIA