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Investing.com - Deutsche Bank (ETR:DBKGn) has lowered its price target on ITV Plc. (LON:ITV) to GBP0.80 from GBP0.85 while maintaining a Hold rating following the company’s first-half results.
ITV delivered better-than-expected H1 results with approximately 25% beat on group adjusted EBITA versus consensus, helped by lower operating expenses and better-than-expected advertising revenue. Despite facing tough comparisons after screening the Men’s Euro Cup last year, ITV’s total advertising revenue (TAR) decline of 12% in Q2 was better than the 14% previously guided.
The high-margin nature of advertising revenue helped Media & Entertainment (M&E) profitability reach approximately EUR35 million in H1 versus consensus expectations of EUR11 million, contributing to the group’s H1 earnings beat. The Studios segment also performed ahead of expectations in Q2.
Deutsche Bank noted a mixed outlook for the second half of the year, with advertising revenue likely to decline in Q3, though new cost-saving measures and a lower content budget should support M&E profitability for the full year. Conversely, the Studios segment is expected to have a stronger H2 compared to H1, potentially taking full-year segment EBITA margins to approximately 14% versus 12% in H1.
Following the H1 results, Deutsche Bank has raised its FY25 and FY26 group revenue estimates by 1% each and adjusted EBITA forecasts by 9% and 5% respectively.
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