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

Proactive Investors Limited | April 01, 2019

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.

Spotlight

Ad exchanges and ad networks co-exist as fundamental parts of today’s advertising industry. Ad networks connect advertisers to publishers, while ad exchanges facilitate buying and selling of ad inventory through real-time bidding. They can work together by ad networks connecting to ad exchanges to bid on inventory and deliver ads on a publisher's website. Ad networks offer a wider reach, while ad exchanges provide more targeted and efficient ad buying.

Spotlight

Ad exchanges and ad networks co-exist as fundamental parts of today’s advertising industry. Ad networks connect advertisers to publishers, while ad exchanges facilitate buying and selling of ad inventory through real-time bidding. They can work together by ad networks connecting to ad exchanges to bid on inventory and deliver ads on a publisher's website. Ad networks offer a wider reach, while ad exchanges provide more targeted and efficient ad buying.

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