30th July 2014
ITV has been recommended as a ‘buy’ by the Share Centre as the television company reported a rise in half year profits of 11% to £322m.
Graham Spooner, investment research analyst at The Share Centre, says: “ITV provided the market with its half year results this morning, which on the whole were positive. The update showed that profit growth was boosted by its expanding production business alongside the continuing progress of the group’s strategy to grow and strengthen all parts of the company.
“With the advertising market showing signs of improvement ITV is well placed and the group plan to generate half its revenue from sources other than traditional adverts by 2015. The company recommended an interim dividend of 1.4p, up 27% and says it is committed to its full year ordinary dividend growing by at least 20% a year for the next three years, which will please investors.
“News in early July that Liberty Global had purchased a 6.4% stake gave the share price a boost and offers the potential for future M&A activity. These results demonstrate the business is continuing to move in the right direction and we recommend ITV as a ‘buy’ for investors.”
ITV chief executive Adam Crozier, ITV chief executive, said: “We have made further good progress with our strategy of growing and strengthening all parts of ITV. In the first six months of the year we again delivered double digit profit growth in every area of the business and increased revenues by 7%. Share of viewing improved during Q2, helped by the FIFA World Cup, and we’re confident of our strong Autumn schedule with both new and returning drama and entertainment. Online, Pay & Interactive is on track to deliver strong growth for the year as a whole, at least in line with the first half. The economic recovery is leading to an improved advertising market, with good growth across all key categories and ITV is well placed to take market share.”