Sharewatch: Granada Falls Ahead Of 1st Half Results
Granada was seen in focus yesterday, down 4.33% ahead of its results release for the first half of 2003, which revealed both turnover and EBITA to be stronger than expected.
The broadcaster reported overall turnover of £734 million, slightly above analysts expectations (Morgan Stanley predicted £724 million). Content revenues were the main driver of growth at the group. Media watchers hoping to get further insight into how the Carlton and Granada merger saga will play out were disappointed as executives would only say that they were continuing to work closely with the Competition Commission to explain the rationale for a single ITV.
Elsewhere, rows over executive pay continue to dominate the headlines with The Independent claiming that the average pay package of a FTSE 100 chief has risen to £1.73 million. However, shareholder activists at GlaxoSmithKlein achieved an extraordinary victory, voting down a plan that would have seen the company’s chief executive collect £22 million if he lost his job. Analysts expect to see similar shareholder revolts across all sectors.
Broader market sentiment was dented yesterday as profit takers moved in. The media sector bore the brunt of the decline on continued concerns of renewed terrorist attacks and the impact of a weakening dollar on corporate earnings.
The closing prices of media company shares on Monday were:
