Dip in advertising revenue hits ITV share price
Broadcaster's market value falls by more than 7% after revealing a fall in profits
by Abi Moses on 1st March, 2018
ITV shares dipped by more than 7% on the London Stock Exchange after reporting a significant drop in full-year profits. The UK's largest commercial broadcaster blamed "ongoing economic and political uncertainty" for a fall in profits in 2017 to £500 million, down 10% on their 2016 results.
New chief executive, Carolyn McCall, blamed a fall in advertising revenue for the dip but with ITV and BBC set to share viewing rights for this summer's football World Cup, McCall expects a stronger 2018.
She explained, "The uncertainty has undoubtedly had an impact on the demand for television advertising and therefore as expected ITV's financial performance."
The former EasyJet chief added, "The weaker pound and accompanying inflationary pressures led to some advertisers reducing spending."
The ITV advertising model has been hit by a slump in demand from high street retailers. The struggling retail sector has led many firms to reduce their marketing budgets as a cost-cutting measure.
Despite a fall in advertising revenue, ITV has been boosted by increased viewing figures for many of its most popular programmes. Shows including Good Morning Britain and teatime quiz show, The Chase, have helped ITV earn a 21.7% viewing share.
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