ITV saw revenues rise 6% across the first nine months of the year to £2.3bn, slightly behind the level of growth reported at the half year as growth in studios slowed. However, overall performance remains in line with management’s expectations.
The shares fell 3.5% in early trading following the announcement, with many commentators putting Brexit down as the main cause for the slower levels of growth at the broadcaster.
Nicholas Hyett, Equity Analyst at Hargreaves Lansdown commented: “Although overall performance is in line with management expectations, Q3 numbers still leave a bit of a bad taste in the mouth.
“Studio revenue growth is slowing, that’s partly explained by the fact it’s a lumpy business but it’s still not ideal. The bigger issue is a slowdown in advertising in the broadcast business, which still accounts for 57% of revenue.
“While ITV’s content is still getting bums on sofas, with viewing numbers up nicely, a gloomy economic outlook means the attention of the viewing public isn’t as attractive to advertisers as it once was.”