We are pleased by the positive momentum and robust outlook comments within this morning’s update and plan to raise our estimates to reflect a more bullish outlook for advertising spend/the impact of last week’s acquisition of US content producer Leftfield Entertainment.
STEVE LIECHTI | INVESTEC
ITV’s first quarter looks OK with the net advertising revenue more or less as we expected, but some bulls may have wanted more and we note the SOCI share is poor while Studios is hit in first quarter by programme phasing (offset in full year) and currency. The valuation looks quite full vs media peers.
PAUL RICHARDS | NUMIS
Last week, the group announced the acquisition of Leftfield, a leading unscripted entertainment producer in the US, for $380m and up to $420m depending on profits over five years for the balance. This is entirely consistent with ITV strategy and the price looks fair.