Sharewatch: ITV Dips Ahead Of Impressive Results

ITV suffered a minor dip in share price yesterday, losing 0.47% to close at 105p ahead of publication of the company’s first financial results since the merger of Carlton and Granada. The broadcaster has revealed impressive half year figures, notching up the largest revenue increase since the dotcom boom.

The commercial television giant announced this morning that net advertising revenue has risen by 4%, while revenues for ITV2 and the ITV News has climbed by a massive 68%. As expected, the broadcaster has also raised its target for cost savings to £120 million.

Also publishing interim results today is SMG. The company saw its share price rise ahead of the announcement, climbing by 1.01% to close at 100˝p yesterday. The group reported an 11% rise in profits and announced that an interim dividend will be re-introduced to shareholders at 1.0p per share.

SMG is in the process of selling its stake in breakfast broadcaster GMTV to ITV, although the transfer may be referred to the Competition Commission for investigation. The deal, worth around £31 million, would give ITV a 75% share in the UK’s largest breakfast licence, and oblige the broadcaster to make a similar offer to the Walt Disney Company for the remaining 25% (see GMTV Purchase May Be Judged By Competition Commission).

Global advertising group WPP was seen in focus yesterday, dipping by 0.48% as reports circulated that the company was preparing an offer of cash and shares worth around $1.3 billion for US advertising firm, Grey Global (see WPP Prepares $1.3 Billion Offer For Grey).

The FTSE 100 brought an end to its five-day winning streak yesterday, losing 0.2% to close at 4,558.4, while the FTSE 250 climbed by 0.3% to 6,233.0.

The closing prices of media company shares on Wednesday were: