Streaming hits power ITV share surge
ITV shares hit a two-year high as it looked forward to a boost from the upcoming release of the second series of Rivals, writes Emily Hawkins.
The broadcaster's production business, ITV Studios, which makes programmes for platforms including Netflix, Amazon Prime Video and Disney Plus, is set to help offset a decline in advertising sales.
The FTSE 250 firm said it is eyeing "good growth" in sales at Studios over the rest of 2025.
Upcoming releases include the second series of Rivals on Disney Plus, starring Emily Atack and David Tennant.
ITV is also expecting a shot in the arm from the third series of The Reluctant Traveler, featuring Eugene Levy, on Apple TV, as well as reality series Love Island: Beyond The Villa in the US.
It said that distribution of its most profitable productions is weighted towards the second half of the year, "giving us confidence that ITV Studios is on track for good revenue growth for the full year, ahead of the global content market".
Sales at ITV Studios in the six months to June 30 were 3pc higher than a year before at £893m, with bosses citing "strong demand" from streaming giants.
But total sales were down by 3pc due to a sluggish performance for its advertising section, which has taken a hit amid economic uncertainty.
Chief executive Carolyn McCall said: "ITV is now a leaner, more digital business in a strong position to compete and succeed in a changing market."
She said that she would slash costs by another £15m, on top of £30m previously announced. The company's shares leapt yesterday, rocketing up 13.3pc, or 10.3p, to 87.8p.
But the stock is still down by around a third compared to four years ago, when the pandemic left Britons stuck indoors watching their televisions.
Aarin Chiekrie, an equity analyst at financial services firm Hargreaves Lansdown, said: "Given the low valuation of ITV and the quality of the Studios business, there's been plenty of speculation about takeover bids in recent times.
"That's likely to remain the case in the near term, and the main driver of the share price until other parts of the business improve performance."
ITV boss Carolyn McCall. (Pic: Pier Marco Tacca/Getty Images)
ITV is attempting to finalise the plans for a £3bn British TV production powerhouse in an alliance with All3Media.
McCall has been in discussions with the owners of All3, the maker of hit series including Gogglebox, Call The Midwife and The Traitors, which is presented by Claudia Winkleman.
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