Why ITV Is Up 33% This Year

LONDON -- ITV (LSE: ITV.L  ) has advanced 33% to 91 pence so far during 2012, making the share one of this year's best performers in the FTSE 100.

The commercial television network, which operates a number of channels including ITV1 and broadcasts such hit shows as The X Factor and Downton Abbey, seems to have impressed investors with a series of notable statements.

During March, ITV announced 2011 results that showed revenue rise 4% to 2.14 billion and profits improve 24% to 398 million pounds. Encouragingly for income investors, a full-year dividend of 1.6 pence per share was announced -- ITV's first annual payment since 2008.

During May, ITV's first-quarter statement revealed that revenue had risen by 13% to 565 million pounds. The main push came from nonadvertising revenue, which jumped 43% to 87 million pounds, with the impetus being the good sales of ITV Studios' productions in the U.K. and the U.S.

Then in July, ITV disclosed half-year results that showed revenue rising by 10% to 1.13 billion pounds, profits increasing by 15% to 235 million pounds, and an interim dividend doubling that of 2011 at 0.8 pence per share. The company also revealed a strengthened balance sheet, with net cash of 92 million pounds.

Adam Crozier, ITV's chief executive, said:

The Transformation Plan continues to gain momentum. External revenues are up 10% with all areas of the business delivering growth. The 106 million pound increase in non-advertising revenues-from content, pay and online-was particularly significant and is further evidence that our strategy of rebalancing the business and growing new revenue streams is working. Our relentless focus on cash and costs remains key. We're on track to deliver cost savings of 20 million pounds this year and our cash conversion is over 100%.

ITV's next trading update will be published on Nov. 13, which may reveal further stirring news that can impress investors.

More blue-chip winners of 2012 are revealed in "8 Shares Held By Britain’s Super Investor," an exclusive Fool report that names the FTSE shares market-trouncing City investor Neil Woodford is backing today, as well as the investing logic behind them. You can discover the potential winners Woodford favors right now by downloading this free report while it remains available.

Are you looking to profit from this uncertain economy? "10 Steps To Making A Million In The Market" is the very latest Motley Fool guide to help Britain invest. Better. We urge you to read the report today -- it's free.

Further Motley Fool investment opportunities:

Barry does not own any share mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2053105, ~/Articles/ArticleHandler.aspx, 7/22/2014 4:13:46 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement