Sharewatch: ITV’s Cost Cut Plans Boost Share Price

Commercial TV giant ITV saw its share price climb yesterday, rising by 0.24% to 106p. The rise was fuelled by reports that the broadcaster has earmarked several non-core businesses for sale in an effort to reduce costs.

The assets are thought to be worth around £600 million and include ITV’s stake in SMG, which itself suffered a dip of 1.48% to 100p yesterday.

Elsewhere shareholders in cable giants NTL and Telewest urged the companies to consider a merger yesterday. Such a deal would create a single company with a market value of around $7 billion (see NTL And Telewest Shareholders Urge $7 Billion Merger). Telewest shares de-listed from the London Stock Exchange last week following financial restructuring.

Global advertising giants Aegis and WPP saw poor performance, slipping by 0.59% and 0.87% respectively ahead of the latest Bellwether report published this morning. The survey revealed continuing buoyancy in the UK’s marketing sector, with 2003 showing the steepest rise in marketing spend since the report began (see Market Recovery Continuing For UK Advertisers).

The FTSE 100 stumbled yesterday, losing 0.4% to close at 4m321.1, while the FTSE 250 dipped by 0.2% to 6,063.5 with a disappointing trading volume of two billion shares.

The closing prices of media company shares on Monday were: