A report from investment banker Morgan Stanley says that despite this current first-half of the year showing some improvement in ITV’s all-important advertising revenues (up around 3 per cent), the prospects for the second half of this calendar year are looking bleak for the UK’s main commercial broadcaster.
Indeed, the bank’s report says ITV’s advertising outlook “has deteriorated” as media buyers have cut back blaming profits warning from their own clients. The automotive sector and Fast Moving Consumer Goods segment are especially under pressure. “This implies a tough backdrop for ITV in H2,” says Morgan Stanley.
However, there are some positives. ITV’s move into a facilities/production centre (ITV Studios) is going well, and Q1 saw revenues doubled. ITV can also make savings (“around £45-£60 million”) in its 2013 programme costs, suggests the bank. ITV has also restructured some of its borrowings, buying back some of its bonds, and thus reducing interest payments.