ITV (LON:ITV) Announces Quarterly Earnings Results

Key Points

• ITV reported GBX 2.20 quarterly EPS, delivered solid first-half results and maintained its full-year guidance, supported by Studios growth and profitable digital revenue growth.
• ITVX viewing rose 27%, while digital revenue increased 13% to £307 million. The planned sale of Media & Entertainment to Sky is expected to return £950 million in net cash to shareholders, alongside a £100 million share buyback.
• Near-term pressures remain: Studios EBITDA fell 9% to £97 million, and management expects third-quarter advertising revenue to decline about 5% amid macroeconomic uncertainty. Shares fell 1.4%, while analysts maintained a consensus “Hold” rating.

ITV (LON:ITV - Get Free Report) issued its quarterly 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 Down 1.4%

Shares of LON:ITV traded down GBX 1.05 during trading on Friday, reaching GBX 74.25. 17,044,217 shares of the stock were exchanged, compared to its average volume of 38,703,078. The firm has a market cap of £2.78 billion, a price-to-earnings ratio of 12.80, a price-to-earnings-growth ratio of -0.53 and a beta of 0.82. The stock has a fifty day moving average of GBX 78.83 and a two-hundred day moving average of GBX 79.58. ITV has a 1-year low of GBX 65.70 and a 1-year high of GBX 87.35. The company has a debt-to-equity ratio of 48.72, a current ratio of 1.23 and a quick ratio of 0.83.

Analyst Ratings Changes

Several analysts recently commented on ITV shares. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a GBX 90 target price on shares of ITV in a report on Friday, May 15th. JPMorgan Chase & Co. downgraded shares of ITV to a "neutral" rating and dropped their price target for the stock from GBX 104 to GBX 85 in a research report on Tuesday, July 7th. Two analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of GBX 87.50.

Insider Activity

In other ITV news, insider Carolyn McCall sold 652,363 shares of ITV stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of GBX 78, for a total transaction of £508,843.14. Also, 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. 0.53% of the stock is currently owned by company insiders.

About ITV

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.

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