ITV – 150p

14 November 2017 – trading update

The group has released a trading update covering the nine month period to 30 September and this has confirmed that trading is in line with expectations.  Total revenue for the period is down by 1% to £2.13bn with the decline in TV advertising revenue being largely offset by an increase in revenues from programming.  Although the TV advertising market in general remains nervous due to Brexit and the uncertainty being seen in the economy, some large supermarket groups and retailers are returning to the market.  The group is continuing to invest in its digital businesses such as ITV Hub whilst ITV Studios continues to perform well with strong growth in ITV America.  The group is also expanding its European presence helped by acquisitions on the Continent.  This statement is very re-assuring in our view and the fall in the share price following its release seems unjustified.  We continue to believe the shares are a BUY.

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