Sharewatch: Positive Results Fail To Lift Pearson

Another rocky day’s trading for media stocks left many companies in the doldrums yesterday. Financial Times owner Pearson suffered a loss of 0.24% to close at 616p, despite optimistic results revealing an increase of 47% in profits for the first half of the year.

The growth exceeded expectations and was attributed mainly to improved market conditions. But while pre-tax profits for the six months to 30th June reached £2 million, up from a loss of £1 million for the same period last year, the company’s share price refused to increase on Friday’s close.

broadcasting giant ITV also saw a dip, sliding by 2.11% to 104źp as reports emerged that the company may be forced to wipe £360 million off the value of its assets following a devaluation of regional operator Carlton (see Carlton Devaluation Hits ITV Assets Hard).

Elsewhere, outdoor advertiser Maiden remained steady ahead of a pre-close statement today outlining expected sales growth of at least 11% for the first half of 2004. The company recently clinched a £477 million deal with Network Rail to take control of 2,000 poster sites and several concourses at 17 railway stations across Britain (see Maiden Clinches £477 Million Rail Contracts).

The FTSE 100 hit a new low for the year with its lowest close since October, slipping by 0.9% to 4,287. The FTSE 250 also fell, losing 1% to finish at 5,927.9.

The closing prices of media company shares on Monday were: