The share price of ITV sustained its post-lockdown recovery since March as it shown signs of optimism in its third quarter update.
While revenue was down in double-digits for the nine months ending 30 September 2020, ITV noted that it advertising revenue for the fourth quarter of the year is expected to be on the increase compared to 2019. November is currently up around 6 percent compared to the same period during 2019 and ITV is confident of a slight gain in ad revenues for the final quarter should the current lock-down end as scheduled.
Referring to positive signs in advertising and production, CEO Carolyn McCall noted:
“We are seeing encouraging signs in both our divisions. Advertising trends are improving with Q4 forecast to be slightly up year on year and 85% of our productions in the UK and internationally that were paused as a result of COVID-19 are back in production or have been delivered. However, COVID restrictions and further national lockdowns have added production costs and are making it challenging to bring ITV Studios productions back to full capacity.
“We remain focused on executing our More Than TV strategy as we accelerate our digital transformation. We are restructuring the Broadcast business to create a new Media and Entertainment Division to better reflect and serve changing viewing habits. The restructure will also drive improvements in efficiency and reduce costs. Planet V has reached another milestone allowing media agencies to self-serve advertising campaigns. We have further improved the design and functionality of the Hub which now has 32m registered users; and BritBox is on track, with a very successful launch for Spitting Image – BritBox’s first original commission.”
The ITV share price ended the day with a very modest gain. It is currently trading at 90p, bouncing back well from lows of around 60p at the onset of the original lockdown.