Sharewatch: SMG Still Rising On ITV Speculation

SMG continued to see a substantial rise in its share price yesterday, as the company added 3.37% to its total following rumours that ITV is preparing to purchase the company’s television assets.

A declaration that ITV’s stake in SMG was a ‘core holding’ is thought to have spurred the flurry of interest amongst city traders on Monday, and was still clearly boosting share price yesterday afternoon. Rumours continue to circulate that a deal between the two broadcasters is imminent.

ITV saw a 1.17% rise in its share price yesterday, closing at 108p, despite news that the broadcaster’s audience share has dipped below the crucial 20% mark during August, as the success of the BBC’s Olympic coverage took its toll on the company (see Digital Television Round-Up – August 2004).

Elsewhere, Independent News and Media saw a slight dip in its stock price, losing 0.53% to close at 141˝p ahead of the company’s interim results published this morning. The newspaper group has revealed a massive 25.1% increase in operating profit year on year for the six months to June, driven by improved performances in each of its operating regions. The increase delivered a record Group operating margin of 17.2%.

Kelvin MacKenzie’s radio firm, The Wireless Group, also publishes its interim results today, however, the company’s share price remained unchanged at 85p yesterday. The group reported a staggering increase of 108% in its half yearly operating profit, taking the total to £1.16 million compared with £0.560 million in 2003.

A dip in confidence amongst investors in mobile telephone operators dragged the markets down yesterday, with the FTSE 100 losing 0.3% to close at 4,545.6. The FTSE 250 was also weakened, losing 0.3% to close at 6,251.4.

The closing prices of media company shares on Tuesday were: