ITV (LON:ITV) Announces Quarterly Earnings Results

ITV (LON:ITV) posted its quarterly earnings data on Friday. The broadcaster reported GBX 2.20 earnings per share (EPS) for the quarter, Digital Look Earnings reports. ITV had a net margin of 7.28% and a return on equity of 11.42%.

Here are the key takeaways from ITV’s conference call:

• Positive Sentiment: ITV reported solid H1 results and maintained full-year guidance, including good Studios revenue growth and strong, profitable digital revenue growth in Media & Entertainment.
• Positive Sentiment: ITVX viewing increased 27% and digital revenue rose 13% to £307 million, supported by the World Cup and growing adoption of targeted advertising through Planet V.
• Positive Sentiment: The planned sale of Media & Entertainment to Sky is expected to generate a £950 million net cash return to shareholders, with ITV also launching a £100 million share buyback over the next nine to 12 months.
• Neutral Sentiment: ITV Studios revenue grew 2% to £912 million, while EBITDA fell 9% to £97 million; management expects stronger second-half deliveries and full-year margins at the lower end of its 13%–15% target range.
• Negative Sentiment: Management expects Q3 total advertising revenue to decline around 5%, citing macroeconomic uncertainty and potential budget shifts following the World Cup, while Q4 visibility remains limited.

ITV Trading Down 1.4%

Shares of ITV stock opened at GBX 74.25 on Friday. ITV has a 1 year low of GBX 65.70 and a 1 year high of GBX 87.35. The firm has a market cap of £2.78 billion, a PE ratio of 12.80, a P/E/G ratio of -0.53 and a beta of 0.82. The stock has a fifty day moving average price of GBX 78.69 and a 200-day moving average price of GBX 79.55. The company has a debt-to-equity ratio of 48.72, a current ratio of 1.23 and a quick ratio of 0.83.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the stock. JPMorgan Chase & Co. cut shares of ITV to a “neutral” rating and cut their price target for the stock from GBX 104 to GBX 85 in a report on Tuesday, July 7th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a GBX 90 target price on shares of ITV in a research report on Friday, May 15th. Two research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of GBX 87.50.

ITV declared that its Board of Directors has initiated a share repurchase plan on Friday, July 31st that allows the company to repurchase 0 shares. This repurchase authorization allows the broadcaster to buy shares of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In related news, insider Carolyn McCall sold 652,363 shares of the business’s stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of GBX 78, for a total value of £508,843.14. Also, insider Chris Kennedy sold 396,282 shares of the stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of GBX 78, for a total transaction of £309,099.96. Insiders own 0.53% of the company’s stock.

ITV Company Profile

ITV is a producer, streamer and broadcaster, consisting of ITV Studios and Media & Entertainment (M&E).

ITV Studios is a scaled global creator, owner and distributor of high-quality TV content, producing some of the most successful shows in the world. It operates in 13 countries, across 60+ labels and is diversified by genre, geography and customer in the key creative markets around the world.

Media & Entertainment is the largest commercial streamer and broadcaster. Through M&E, we make brilliant British-focused content available on ITVX – our free, advertiser-funded streaming service – alongside our free-to-air linear TV channels.