ITV shares tank on results, studios outlook
ITV shares are set for their biggest one-day drop in 10 months, hit by a slowing appetite for its content. IGTV's @AngelineOng explains why ITV’s numbers highlight structural weakness in the broadcast advertising market.
(Partial Video Transcript)
ITV shares drop 18% this year
ITV is one of the biggest losers on London's mid caps. Here's a look at the daily chart to show you the price action there. This red bar currently showing that ITV is set for its potentially biggest loss in 10 months or so. It's now down 6.25%.
The British television production firm says it sees lower demand from free-to-air broadcasters and this is going to hit its studio's business in the fourth quarter. It's also hinting that growth of its studio's unit will be around three percent down mid single-digit forecasts earlier and full-year ad revenue is set to fall by 8%.
Now, while the ongoing weakness in broadcast advertising isn't new, what is key is all this news from ITV adds fuel to the fire. Underlying just how tough things are out there for the maker of Love Island and also ITV has been hoping its streaming service will offset this uncertain advertising demand.
WPP, Omnicom feel broadcast ad pinch
But let's just show you WPP and Omnicom as well, because both these giants have also underlined how difficult things are, especially in the broadcast advertising side.
And in fact, a lot of it is stemming from the still-weak advertising market when it comes to tech. ITV shares - just taking a look at that for you before we go - are currently down more than 6% and down more than 18% so far this year.
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