Downturn for ITV is halted by Downton
NATIONAL broadcaster ITV is expected to show an upturn in fortunes in its annual earnings this Wednesday on the back of mega-hit TV show Downton Abbey and a rise in industry-wide advertising revenues.
Analyst consensus expects the television group to report pre-tax profits of £361m, showing a growth of 12.5 per cent on 2010.
But Numis analysts think ITV will report earnings of £365m before tax, a 13.7 per cent rise on 2010 – rising to as high as £395m if national advertising revenue grew its expected two per cent instead of coming in flat.
ITV has experienced a change in fortunes since current chief executive Adam Crozier took the helm in 2010.
Former Royal Mail chief executive, ex-boss of Saatchi & Saatchi and the man who gave Sven-Göran Eriksson the England job while head of the Football Association, Crozier has eradicated more than £600m of debt and has led the broadcaster into the black.
ITV’s plan now will be to cement its online presence and nurture its in-house creative productions – crucial in maintaining royalties from a back catalogue of programmes – as it loosens its reliance on advertising revenues.
Looking to the year ahead, the European Football Championship is expected to boost ITV, which is gaining market share as Channel 4 takes a hit.
Shares closed three per cent up on Friday at 80.1p.