The feel-good factor around England’s World Cup run helps free-to-air broadcaster ITV (ITV) to the top of the FTSE 100 leaderboard this morning, up 3.5% to 179p. These are the highest levels for the best part of a year and a significant improvement on the 141p lows hit in April.
We identified the company as one of the potential beneficiaries of the World Cup in this article ahead of the tournament.
Then the market appeared to be concerned the World Cup would be something of a damp squib in advertising terms. This looks increasingly unfounded, particularly after England triumphed over Colombia in a last-16 tie on ITV.
BUMPER VIEWING FIGURES
AJ Bell investment director Russ Mould says: ‘Almost 24m people watched England end their penalty hoodoo on ITV1, at one stage four in five people watching TV in the UK were tuned into the channel.
‘Though this is an exceptional event, it is also a reminder that for all the talk of online streaming people do still watch live TV, making it a medium with enduring attractions for advertisers.
‘If England makes it through their quarter final against Sweden - a game being shown on the BBC - then ITV is scheduled to screen their semi-final which would be good for audience numbers and potential advertising income.’
LOVE ISLAND LOVE IN
As Mould observes the football is not the only supportive factor for ITV at present. ‘Arguably the company is also being boosted by the other TV phenomenon of the summer: ITV2's Love Island,’ he adds. ‘Health and beauty shopping brand Superdrug recently reported a surge in profit after sponsoring the show.’
ITV shares trade on a price-to-earnings ratio of 11.2 times and the company is scheduled to report its first half results on 25 July when it may quantify the impact from its recent ratings winners.
