ITV (ITV)

[monabri]

"We have a solid balance sheet which enables us to make the right investment decisions and deliver returns to shareholders in line with our guidance of at least an 8p dividend for 2019.""

Previous dividends

End Type Announce Date Ex-Dividend Date Payment Date Dividend
12/2018 Final 27-Feb-19 11-Apr-19 23-May-19 5.4p
12/2019 Interim 24-Jul-19 24-Oct-19 02-Dec-19 2.6p

[dealtn]

Looks good enough to me, and whilst I don't like snapshot market reactions as realistic assessments note the shares are up slightly too. Despite rising 25% over the last 3 months from close to their lows the shares are still on a single digit P/E.

It is clearly still unloved by the market, although I think this is based on a general feeling that TV advertising is a structurally declining market, rather than on a judgement on the entire group. Non-advertising revenues are now above advertising ones, and ITV studios is a growth business, and in particular in the US content market. Britbox is now launched, although far too early to judge its likely long term success. Again here you get the impression a BBC/ITV service is considered less "sexy" than an Apple or Google one, and priced by the market accordingly, perhaps unfairly.

I suspect the value will likely out via a takeover rather than through a gradual appreciation and re-pricing by the market. Interesting that SKY left the market in this way.

Happy to stay invested here.

[dealtn]

https://www.investegate.co.uk/itv-plc-- ... 00050591F/

Finals out today, for the year up to end-Dec 19.

The market seems to be focussing entirely on the comment that advertising revenue is expected to be down in April, by 10%, with the Travel Industry being mentioned as a key suspect in this. The share price is down over 10% on the day as a result.

However, these results are actually better than expected (although referring to the past), and what the market perhaps hasn't noticed is that Q1 advertising revenue is actually forecast to be up (which covers March 2020). Jan was -1%, Feb +8%, Mar +1%. It may well be the case that whilst some companies cut back on advertising spend, others will look to protect sales in the short run by increasing it. In addition in a scenario of "self-isolation" TV audience figures will likely grow, and potential advertising revenues too.

Most importantly though is that advertising revenue now constitutes a minority of the company's income stream. Advertising revenue had growth of -1.5%, non-advertising revenue had growth of 7%.

Plenty to read in the full release. Whilst I already hold, the news looks ok to me and am likely to add to my position given the market's knee-jerk reaction. I still suspect the value will more likely be play out, if it occurs in the short term, via a takeover (SKY demonstrates). It is entirely possible someone will view the "Britbox asset" as undervalued, or the growing ITV Studios business.

[Davidsb]

Easy enough to spot the final dividend in the RNS, but I have given up searching for the XD and payment dates.

Naively, I turned to the company website, which has no final dividend details under "Dividends", and no dates under "Shareholder Calendar".

I guess they will get around to updating the website some time in the near future.....

;¬)

[monabri]

Easy enough to spot the final dividend in the RNS, but I have given up searching for the XD and payment dates.

Naively, I turned to the company website, which has no final dividend details under "Dividends", and no dates under "Shareholder Calendar".

I guess they will get around to updating the website some time in the near future.....

;¬)

9th April XD
21st May pay

Useful link

https://dividenddata.co.uk/dividend-yield.py?epic=ITV

[dealtn]

Easy enough to spot the final dividend in the RNS, but I have given up searching for the XD and payment dates.

Naively, I turned to the company website, which has no final dividend details under "Dividends", and no dates under "Shareholder Calendar".

I guess they will get around to updating the website some time in the near future.....

;¬)

Er, you don't need to scroll down very far. It's even closer to the top than the "Chief Executive's Report"

[PinkDalek]

Er, you don't need to scroll down very far. It's even closer to the top than the "Chief Executive's Report"

I don't bother scrolling at all.

Thanks to the Fools both here and at TMF, I'm aware of the CtrlF search function***.

If that is used and entering Dividend in the Find on page part that should appear (in the link you provided https://www.investegate.co.uk/itv-plc--itv-/rns/final-results/202003050700050591F/) finds the detail at the 4th hit:

5. The final dividend will be paid on 21 May 2020. The ex-dividend date is 9 April 2020. The record date is 14 April 2020.

*** Other methods are available, if that method isn't.

[idpickering]

2020 European Football Championship postponement.

UEFA have today announced that the 2020 European Football Championship (Euro 2020) is being postponed until 2021. The direct impact will be to reduce ITV's schedule costs in 2020 by £40m to £50m, including the cost of replacement programming. There will be no loss of sponsorship revenue as the tournament is pre-sponsored. We look forward to broadcasting the Euros and providing a significant marketing opportunity for advertisers in 2021, a year which does not have any other large sports tournament.

ITV continues to closely monitor the implications of the Coronavirus and will update the market further as appropriate. Our priority remains to protect our people. Currently ITV's guidance for March and April advertising revenue has not changed.

https://www.investegate.co.uk/itv-plc-- ... 28004895G/

[dealtn]

Seems counterintuitive that with increasing numbers spending more time at home that "demand" for their product is going up, yet their share price is one of the biggest sufferers.

[OLTB]

Seems counterintuitive that with increasing numbers spending more time at home that "demand" for their product is going up, yet their share price is one of the biggest sufferers.

It's strange isn't it - I hold ITV and thought that as more people will be at home, this would boost viewing figures.

Perhaps 'the market' doesn't know what viewing platform will benefit most - terrestrial or Netflix (or Britbox!). I would think that the demographic for Netflix and its ilk would be younger viewers, and terrestrial for older viewers (not exclusively, but in the whole).

Being half a century, I see myself as having a foot in each camp!

Cheers, OLTB.

[monabri]

Well, football will come home (the song says so!)...but we will need to wait a year. Might be a good opportunity to top up.

[idpickering]

Trading update, Annual Report and Notice of AGM

Carolyn McCall, ITV Chief Executive, said

"We are operating in unprecedented and uncertain times, requiring us to take difficult decisions, plan carefully and act with speed. Our absolute priority is to protect our people, while trying to ensure that we deliver the news and programmes our viewers value and love to watch, and to keep them informed. We are actively taking measures to reduce costs and manage our cash flow so that we are best positioned to continue to deliver our strategy of building a digitally led media and entertainment company over the medium term."

https://www.investegate.co.uk/itv-plc-- ... 00101212H/

[Dod101]

Well, football will come home (the song says so!)...but we will need to wait a year. Might be a good opportunity to top up.

Provided you do not mind having no dividend.

Dod

[dealtn]

Sensible decision to preserve cash and not pay dividend, and limit capex.

[vrdiver]

Seems counterintuitive that with increasing numbers spending more time at home that "demand" for their product is going up, yet their share price is one of the biggest sufferers.

It's strange isn't it - I hold ITV and thought that as more people will be at home, this would boost viewing figures.

I suspect that despite increased viewing figures, advertisers are slashing their own budgets to preserve cash, so ITV simply isn't able to sell their audience. About the only one likely to want more airtime at the moment is the government, but they're getting it free as "news" announcements rather than say, as paid public information adverts.

Too early to tell whether ITV will be a long term winner or loser from all of this (IMHO).

VRD

[idpickering]

ITV plc Q1 Trading Statement.

Performance for the three months to 31 March

· Total external revenue was down 7% at £694m (2019: £743m)

· Total ITV Studios revenue was down 11% at £342m (2019: £385m), impacted by the phasing of deliveries and restrictions on working practices due to COVID-19

· Broadcast revenue was up 2% at £500m (2019: £489m) with ITV total advertising up 2% as originally guided, and online revenues up 26%

· ITV total viewing was up 2% with very strong growth in online viewing up 75%, simulcast viewing up 112% and reach up 40% on the ITV Hub

· ITV main channel's share of viewing (SOV) was marginally up at 17.9%, its best quarter since 2009 while ITV Family SOV was down 2% at 23.6%, partly impacted by the volume of the BBC's news output

https://www.investegate.co.uk/itv-plc-- ... 00080373M/

[dealtn]

Seems counterintuitive that with increasing numbers spending more time at home that "demand" for their product is going up, yet their share price is one of the biggest sufferers.

An interesting update, covering the first 3 months so approx. 1/3 over the "Covid-19" affected economy.

ITV total advertising revenue +2% (in line with guidance), although April down 42%. It will be interesting to see how quickly advertisers return, or more importantly who has the ability to set prices. It is apparent that "demand" for the product is high. Total viewing is up, and online viewing by 75%. The back catalogue is being sought, particularly Internationally, and the demand for the new BritBox product is there. Lots of free trials at a time when many have time to watch, so it is now important to see how this is monetized as trials lead to subscription, or not.

Social distancing has impacted the other product, ie making programmes. But as lock downs are relaxed gradually across the world this will unwind. Programmes have recommenced production in Germany and Australia for instance.

The market appears to like this update, but the share price still considerably below peak. Already invested here (not very successfully!), and were I to have any cash for reinvesting in the markets, this would be a candidate.

I still suspect the value will out via a takeover, and the successful roll out of BritBox gives me some hope.

[idpickering]

Q3 Trading Update.

Carolyn McCall, ITV Chief Executive, said:

"We are seeing encouraging signs in both our divisions. Advertising trends are improving with Q4 forecast to be slightly up year on year and 85% of our productions in the UK and internationally that were paused as a result of COVID-19 are back in production or have been delivered. However, COVID restrictions and further national lockdowns have added production costs and are making it challenging to bring ITV Studios productions back to full capacity.

"We remain focused on executing our More Than TV strategy as we accelerate our digital transformation. We are restructuring the Broadcast business to create a new Media and Entertainment Division to better reflect and serve changing viewing habits. The restructure will also drive improvements in efficiency and reduce costs. Planet V has reached another milestone allowing media agencies to self-serve advertising campaigns. We have further improved the design and functionality of the Hub which now has 32m registered users; and BritBox is on track, with a very successful launch for Spitting Image - BritBox's first original commission.

"Looking ahead we will continue to monitor our performance very carefully against a wide range of scenarios given the ongoing uncertainty. We continue to focus on cash and costs and our balance sheet remains robust with good access to liquidity."

https://www.investegate.co.uk/itv-plc-- ... 00050516F/

[dealtn]

Q3 Trading Update.

https://www.investegate.co.uk/itv-plc-- ... 00050516F/

Missed this one this morning somehow!

Lots to like here, although a strong likelihood I am talking my own book.

Forecast for Q4 to be up year-on-year, which you wouldn't guess from the share price which is down around 30% on a year ago.

Most seem to value this company as an advertising venture, so its encouraging to look at the latest quarter, rather than the negative numbers for the 9 months of the year to date I think. Advertising changes in the last 3 months were August +3%, September -2% and October -1% compared with the pre-Covid 2019. Given that was a strong quarter encompassing the Rugby World Cup that looks quite impressive. November is forecast +6%.

The other side of the company is programme making where 85% of programmes halted due to Covid are back in production.

I take with a pinch of salt the viewing figures for 2020 at +2%, as clearly more hours have been spent at home, which for many will have meant turning on the telly, but its not hard to think a post lockdown world with growing advertising revenue won't be harmful to ITV. Furthermore the transition to modern television viewing habits continues with rising numbers using ITV Hub, and whilst little is specifically said about the Britbox joint venture it sounds positive.

I would want to see more clarity on the pension numbers, but suspect this will have improved in the last few days too with movement in Gilt and UK Corporate Credit yields. I will go digging again at some point. Regardless the scheme is in surplus, not deficit, and at some point contribution payments will fall to reflect this.

Covid, and the assumed huge hit to advertising revenue, knocked the share price in half in March/April, so plenty of room to bounce even after the "vaccine" rally of recent sessions. Already long but if I take profits elsewhere this is certainly a candidate for recycling that cash.

[monabri]

I wasn't too worried about the pension figures but that was based on the JLT Benefits report published Jan 2019. The fund was funded 97% and dividends were ~£500m per yr with pension contributions ~£90m per year.

I found the JLT (Jardine Lloyd Thompson) Benefits report really useful for it's overview of pensions on FTSE100 and FTSE250 (2 reports). I tried to contact JLT yesterday to see if updates were available.

However, Britbox and Spitting Image...??