RBS broker: ITV advertising is rising

A broker’s note from RBS this morning suggests that ITV is due to see a boost in advertising in the short term – up by 29% in April, 27% in May, and up by an even higher 32% in June, according to UK media buyers.

Buyers believe there is “a very real recovery in the market at the moment and a lot of late money coming through”.

Retail and FMCG are thought to be driving the increases, while financial services are picking up, although auto has reached bottom.

Overall, ITV’s advertising is said to be up 7% in the first three months of the year, and by a significant 30% in Q2.  As such, RBS predicts a 11% increase for the year is “conceivably possible”.

The broker’s note, which states that 1% on advertising is worth £14 million on revenue and operating profit, also said concerns over investment by ITV’s new CEO is “over-played” and the “opportunity of a CRR climbdown and ad trends are under-appreciated”.