ITV (LON:ITV) Releases Quarterly Earnings Results

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

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 Stock Performance

ITV traded down GBX 1.05 during trading hours on Friday, hitting GBX 74.25. The stock had a trading volume of 17,044,217 shares, compared to its average volume of 38,703,078. ITV has a 1 year low of GBX 65.70 and a 1 year high of GBX 87.35. The company’s fifty day simple moving average is GBX 78.83 and its 200 day simple moving average is GBX 79.58. The stock has a market cap of £2.78 billion, a PE ratio of 12.80, a price-to-earnings-growth ratio of -0.53 and a beta of 0.82. The company has a quick ratio of 0.83, a current ratio of 1.23 and a debt-to-equity ratio of 48.72.

Wall Street Analyst Weigh In

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

Insider Activity

In other news, insider Chris Kennedy sold 396,282 shares of ITV stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of GBX 78, for a total value of £309,099.96. Also, insider Carolyn McCall sold 652,363 shares of the business’s stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of GBX 78, for a total transaction of £508,843.14. 0.53% of the stock is owned by corporate insiders.

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.