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.
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“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 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.
