ITV News Update: ITV Deliver Steady Growth
ITV News Update: ITV deliver steady growth as consumers are making their way back to the high street and hope this will lead to higher advertising budgets.
As retailers reap the reward of greater consumer spending on the high street ITV who rely on advertising to fund their programming are hoping that this will lead to a loosening of advertising purse strings. The independent TV programmer has held its own and kept its head above water while the advertising landscape has been essentially flat. Attention will be on share prices as consumer confidence boosts the advertisers determination to spend more on advertising their products.
The first half of the financial year showed ITV returning a solid performance and pre tax adjusted profits had increased by some sixteen per cent to two hundred and seventy million pounds which was thought to be even more impressive given the fact that the core advertising business had reported their revenue down to seven hundred and forty one million pounds, a three per cent loss.
The trend makes ITV well positioned for the time when TV advertising starts to recover, as it is now a more profitable concern. ITV have also made a sensible use of their cash in the first half of the financial year and had restructured debt with a one hundred million pound buy back and a pension fund contribution of eight million pounds.
ITV News Update
The company headquarters was also purchased during the financial period for a sum of fifty eight million pounds. If advertising did come back it is possible that ITV would be in a net cash position by the end of the year.
ITV have already made a statement of intent earlier this year in February by announcing that there will be a special dividend of four pence per share or one hundred and fifty six million pounds. The dividend at the end of the year is anticipated to have risen forty per cent to 3.6 pence that would offer a yield of about two per cent. However the most attractive consideration is the thought of the return of advertising cash to boost the station’s fortunes.
It is clearly a tough time to be a company that relies on advertising revenue at a time when budgets for advertising are under pressure. However ITV appear to be making good headway in the business of delivering quality programming to us all.
Contact ITV for more information.
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