Sharewatch: ITV Slips As Bank Predicts Ad Downturn

ITV saw a poor day’s performance on the stock markets yesterday, slipping 2.48% to 649˝p as Deutsche Bank predicted losses in the broadcaster’s advertising market share would continue into 2005. The German bank also dropped its recommendation to investors to buy, instead instructing them to hold whilst simultaneously lowering its price target for the company to 115p, 23% lower than previously.

The broadcaster had expected advertising income to increase this year with the Euro 2004 football tournament giving revenues a much needed boost. The company had expected a surge in advertising following a high demand for commercial spots during its coverage of the competition and is understood to be charging between £250,000 and £300 000 for a 30 second spot during its coverage, with the premium for appearing during an England game pushing the rate to around £350,000 (see ITV Set To Score £6 Million From England Game).

Elsewhere Daily Mail & General Trust enjoyed a rise of 1.52% yesterday, pushing share price up to 703˝p as the company announced it was withdrawing from the auction for the Telegraph newspaper titles (see Daily Mail Pulls Out Of Race For Telegraph Titles). Rising price and possible regulatory issues are understood to have prompted the withdrawal, leaving reclusive media moguls the Barclay brothers front runners to walk away with the much sought after newspaper titles.

Rival newspaper group Trinity Mirror is also in the spotlight today, with the announcement that former deputy editor of the Sunday Mirror Richard Wallace is to become editor of the company’s flagship Daily Mirror with immediate effect. The move will see Wallace charged with reviving the Mirror‘s flagging circulation following Piers Morgan’s dismissal from the post last month.

The FTSE 100 managed a slight rise yesterday, closing less than 0.1% higher at 4,493.3, while the FTSE 250 rose by 0.2% to 6,142.3.

The closing prices of media company shares on Thursday were: