Britain’s biggest free-to-air commercial broadcaster ITV (ITV) is hoping to launch a new TV streaming service as it battles with cord-cutting over-the-top services like Netflix and Amazon.
The news comes alongside what the company hailed as ‘fantastic’ performance on air and online in its first half, with the World Cup and hit shows like ‘Love Island’ helping revenue to rise 8% to £1.59bn. ITV says interim profits rose to £265m from £259m last year while total advertising sales rose 2% in the six months to 30 June, with 48% growth in online.
But management enthusiasm is not matched by investors in early trade on Wednesday, with ITV’s share price barely moving. The stock nudges less than 1% lower to 169.3p. This is largely due to dour short-term prospects, where management expects limited advertising revenue rises ahead amid ‘wider market uncertainty’.
The FTSE 100 eases off modestly early on Wednesday, losing around 12 points to 7,696.19.
DRUGS FIRM SEES SHARES COLLAPSE
Drugs developer Indivior (INDV) saw its share price crash by more than 20% on Wednesday as the company feels the effect of the launch of a generic version of its opioid addiction treatment and posts its second straight drop in quarterly profit.
The company says copycat versions of its Suboxone Film could hit the firm for $25m, perhaps 'materially higher'.
Operating profit for the half year to 30 June fell from $117m to $84m. Shares in the British drugmaker are down 71p at 262.7p.
Vodafone (VOD) is also modestly on the back foot on Wednesday. Shares in the UK and European mobile network giant slip 0.4% lower in early deals to 176.94p thanks to a slowdown in first quarter organic service revenue.
This is largely because of tough trading in Italy and Spain, the former where stiff competition has emerged this year from discount rival Iliad.
Vodafone sales fell 4.9% to €10.9bn for the three months to the 30 June with the group also blaming adverse currency moves and the adoption of different accounting standards. Mobile data traffic soared 57% while Vodafone confirmed that its preferred measure of full year profits will rise between 1% and 5%.
WIZZ TRIMS CAPACITY GROWTH TARGETS
Budget airline Wizz Air (WIZZ) trimmed its full year capacity growth forecast from 20% to 18% as it expects disruptions related to European air traffic control issues to continue into autumn amid rising fuel prices.
The airline industry is up in arms about strikes by French air traffic control workers that limited access to European sky routes. Ryanair’s (RYA) boss Michael O’Leary complained about this issue in the budget flyer’s own first quarter results on Monday.
The Dublin-based airline also plans to slash its winter fleet by 20% for 2018 as competition continues to bite.
MODEST WORLD CUP BOOZE BOOST
The World Cup and the recent heatwave helped boost sales at pubs group Marston's (MARS), although progress is modest. The company reported like-for-like sales 0.9% ahead in the 16 weeks to 21 July. Marston’s shares rise 1% to 98.9p.
Africa-focused explorer Tullow Oil (TLW) plans to use its $401m first half free cash flow to pay down debt and invest rather than pay a dividend, it said on Wednesday. The company recently raised the prospect of a return of dividends, but if the news comes as a blow to investors, they are not showing it, with buyers pushing the stock nearly 2.5% higher in trade to Wednesday to 222.3p.
Gold prices were little changed on Wednesday as the dollar held steady ahead of a meeting between the US and European Commission presidents to discuss trade-related issues.
Oil prices rose for a second day on Wednesday after industry group data showed US crude inventories fell more than expected last week, easing worries about oversupply that had dragged on markets in recent sessions.
