ITV, the leading commercial broadcaster in the UK, saw a 3% revenue decline in 2024 but expects growth across all revenue sources in 2025. ITV's low valuation, strong cash flow, and attractive dividend make it a compelling investment, with potential takeover bids adding further upside. The company has low debt, ongoing share buybacks, and cost-cutting measures, positioning it for accelerated EPS growth and capital appreciation.
ITV PLC (LSE:ITV) reported strong profit growth despite lower revenues last year as it continued an efficiency programme. Group revenue shrank 3% to £4.1 billion in 2024, with total advertising revenue up 2% but offset by a 6% decline at the ITV Studios production arm due to the Hollywood strikes and a softer demand from free-to-air broadcasters.
ITV PLC's full-year results next Thursday, 6 March come after the broadcaster has emerged in the sights of a string of firms over a potential takeover. According to Sky News, CVC Capital Partners, RedBird Capital-owned All3Media, Mediawan and a major French broadcaster, thought to be Groupe TF1, had been among firms weighing up potential bids as of November.
British broadcaster ITV has been holding early stage talks with Abu Dhabi-backed group RedBird IMI about a possible merger of their respective production businesses, two people with knowledge of the situation said.
ITV PLC (LSE:ITV) is once again said to be in the crosshairs of a string of potential buyers. Marking the latest in years' worth of speculation over a takeover for the broadcaster, reports of renewed interest appeared following a drop in ITV shares to multi-year lows.
ITV PLC (LSE:ITV) has reportedly emerged as a takeover target of a string of potential suitors, according to Sky News. CVC Capital Partners, RedBird Capital-owned All3Media, Mediawan and a major French broadcaster, thought to be Groupe TF1, are among firms weighing up potential bids.
Barclays lowered the firm's price target on ITV to 80 GBp from 90 GBp and keeps an Equal Weight rating on the shares.
ITV PLC's (LSE:ITV) share price opened 8% lower as it reported a slowdown in ad revenue and unveiled £20 million in cost cuts. Total advertising revenue was flat in the third quarter and is projected to grow just 2.5% for the year.
UK network ITV is planning an additional £20M ($25.9M) in net cost savings, as impacts of the 2023 Hollywood labor strikes hit its production arm and broadcaster demand dropped. The broadcaster has posted group revenues of £2.
Britain's ITV reported a bigger-than-expected revenue fall on Thursday, sending its shares 9% lower, as the broadcaster's studios business continued to feel the effects of last year's strike by U.S. writers.
ITV PLC (LSE:ITV)'s third quarter update next Thursday, November 7 will offer an insight into its progress on generating record studio profits this year. Last time out in July, ITV said profits from its studio wing were expected to hit a new peak over the year, driven by higher margin catalogue sales and cost-cutting efforts.
European broadcasters like Atresmedia, TF1, RTL Group, are undervalued and overlooked despite improving performance and attractive dividend yields. These broadcasters trade at low valuations, with some showing performance levels similar to pre-pandemic highs. They remain under the radar on Seeking Alpha. ITV sees improving advertising revenue in the Media and Entertainment business and ITV studios is set to have a good 2025 with some temporary headwinds in 2024.