Skip to content
Home / News |

ITV Share Price Plunges 5% as Earnings and Revenue Fall

ITV
Chris

Shares of ITV PLC (LON: ITV) tumbled 5% after the media firm posted a 50% decline in adjusted earnings (EBITDA) to £165 million. The falling profit came as a result of a contraction in revenue by 17% to £1.21 billion

The FTSE 100 firm blamed a “significant decline in the demand for advertising” during the pandemic and lockdown for a plunge in profits. The ad revenue plunged 21%, partially offset by a jump in online viewing by 13%.

However, ITV says it noted an uptick in demand for advertising as its production restarted following the lockdown easing. 

X testing X
WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.
Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.
5.0
Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

“This has been one of the most challenging times in the history of ITV…,” said chief executive Carolyn McCall in a statement.

“The future is still uncertain due to the pandemic but the action we have taken to manage and mitigate the impact of [coronavirus] puts us in a good position to continue to invest in our strategy of transforming ITV into a digitally led media and entertainment company”, McCall added.

ITV share price tumbled 5% on a 50% decline in adjusted earnings (EBITDA) and a 17% decline in revenue amid tumbling ad sales

ITV share price closed 2.5% higher yesterday after Deutsche Bank upgraded its stock to “buy” from “hold” and hiked the stock target price to 120p from 80p.

Chris
Chris
Author