ITV ad revenues to fall in 2019 as Brexit uncertainty weighs, Liberum predicts

The overwhelming elephant in the room for broadcaster ITV plc (LON:ITV) is Brexit and the impact it will have on advertising revenue, Liberum said as it cut its target price on the shares. In February, ITV warned Brexit uncertainty and no World Cup football boost would hold back profits in the first half of 2019.The broadcaster said it expects advertising revenues to fall by 3-4% year-on-year in the first four months of the year as companies become more reluctant to pay for ad campaigns until there is more clarity on Brexit. Liberum expects ITV’s total advertising revenues will drop 3.7% in 2019, compared to its previous forecast for a 1.2% increase. The broker also cut its forecast for adjusted earnings per share in 2019 by 16% to 13p and lowered its estimate for 2020 by 17% to 15.3p.

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