Sharewatch: ITV Dips As Television Advertising Takes Knock

ITV, the UK’s largest commercial broadcaster, saw shares dip by 1.02% yesterday to close at 98žp after figures from Ofcom revealed that the amount of money received through subscriptions by the television industry has overtaken advertising revenue for the first time in the sector’s history.

The communications 2004 report showed that subscription income for Pay-TV services rose by 11% last year to around £3.3 billion, while advertising revenues climbed by just 3% to £3.24 billion, roughly in line with inflation and following three year of stagnation driven by poor economic conditions (see Multi-Channel Success Hits Terrestrial Broadcasters).

The news provided a much needed boost to BSkyB, which saw shares rise by 0.10% to finish at 477p. The satellite broadcaster has experienced a poor week’s trading after announcing less than impressive subscriber statistics (see Sky Profits Rocket Despite Slowing Subscriber Rates).

Elsewhere, Emap dipped by 0.64% to 699˝p following its recent acquisition of the Cannes Lions International Advertising Festival for £52.5 million. The festival is the largest yearly gathering in the marketing world and each June over 8,000 advertising and marketing professionals attend.

The FTSE 100 put in a rather lacklustre performance yesterday, dipping by 0.9% to close at 4,312.2, with the mid-cap FTSE 250 index finishing 0.3% lower at 5,858.5. Trading volume was 2 billion depressed by the holiday season.

The closing prices of media company shares on Wednesday were: