Brokers Cut Carlton And Granada Forecasts Following Ad Deterioration
Merrill Lynch has this morning downgraded its advertising forecasts for ITV companies Carlton Communications and Granada, causing stock in each to fall during the morning’s trading. Carlton was down 14p at 229p by 11:00am and Granada, after an earlier fall, had regained its opening price of 113ÂÂźp by this same time.
Merrill is expecting 2001 ITV advertising growth levels to come in at -14.7%; the average decline for the year to July 2001 is 14.5%, according to agency estimates collated by MediaTel.
| ITV Network Ad Revenue (£) | |||
| 2000 | 2001 | % Change | |
| January | 156,311,973 | 140,920,000 | -9.8 |
| February | 151,906,909 | 143,030,000 | -5.8 |
| March | 174,000,000 | 159,700,000 | -8.2 |
| April | 192,930,000 | 156,530,000 | -18.9 |
| May | 173,470,000 | 138,600,000 | -20.1 |
| June | 168,740,000 | 128,210,000 | -24.0 |
| July | 138,000,000 | 117,940,000 | -14.5 |
| Average | 165,051,269 | 140,704,286 | -14.5 |
| Source: MediaTel/MediaTel Insight | |||
Merrill sees advertising growth for 2002 September year end at minus 7.0%, down from the previous forecast of -1.0%. For Carlton, that reduces revenues by £39 million and profits by £23 million and for Granada it knocks back revenues by £49 million and profits by £34 million, according to the broker.