Q3 Trading Update
https://www.investegate.co.uk/itv-plc-- ... 00058639R/Most see this solely as an advertising company, not a broadcaster and programme maker.
In that vein the highlights are:-
Total advertising revenue (TAR) for 2021 is expected to be the highest in ITV's history
○ TAR was up 30% for the 9 months to the end of September 2021, with July up 68%, August up 24% and September up 16% compared to the same period in 2020
○ AVOD revenue remains very strong, up 54% to the end of September compared to the same period in 2020
○ Q4 TAR is expected to be up between 11% and 13% against strong comparatives in 2020, with October up 17% and we forecast November to be up around 12% and December to be up between 5% and 10%
"ITV TAR for the full year 2021 is expected to be the highest in ITV's history, up around 24%. This is driven by the re-opening of the economy and the delivery of the Commercial strategy to reinforce the power of mass simultaneous reach and build a strong addressable advertising platform"
Many see traditional broadcast companies as outdated and the future is streaming etc. with Disney, Netflix etc. as the only investable options.
Therefore this may interest
Share of viewing and online viewing growing
○ ITV main channel's share of viewing (SOV) for the 9 months to the end of September was up from 16.6% to 17.0% and ITV Family SOV was up from 22.2% to 22.5% with the Euros, Love Island and dramas such as Manhunt: The Night Stalker and Vera, delivering strong ratings as we continue to provide both mass audiences and key demographics
○ Online viewing was up 39%, with dwell time up 9% and simulcast viewing up 51%
○ ITV total viewing was down 5%, against a tough comparative in 2020 which was driven by the rise in viewing due to the lockdown
● BritBox UK continues to perform well and on plan and has recently launched on Xbox. It has an exciting pipeline of new content including the Irvine Welsh drama, Crime, available shortly and Hotel Portofino, Magpie Murders and Why Didn't They Ask Evans? in 2022
● BritBox International is delivering strong growth in subscriptions across the US, Canada and Australia and successfully launched in South Africa in August with more markets expected in 2022
Importantly
"We are on track to deliver our previously announced £30 million cost saving target for 2021"
I still see the potential for significant rerating of the share price, probably via a takeover. In the meantime share price is up around 13% today on these impressive results, just below their 1 year highs - but plenty of room before the all time highs are in sight.