MARKET REPORT: ITV shares rise 9.1% as it reveals it’s considering selling a stake in its production arm

- Advertisement -


ITV’s stock rose after it was reported the company was considering selling a stake in its production arm, which produces shows like Love Island and Coronation Street. Broadcaster FTSE 250 is said to be considering selling part of ITV Studios.

- Advertisement -

Shares are up 9.1%, or 5.64p, to 67.34p, but are still down about 40% this year. An ITV spokesperson said: “The ITV board is constantly looking at ways to increase shareholder value. However, we do not comment on speculation.”

- Advertisement -

The production arm is one of the largest content producers in Europe and private equity groups are expected to be interested in taking a stake. Citi analysts estimate that ITV Studios could be worth up to £3bn.

- Advertisement -

ITV’s stock rose after it was reported the company was considering selling a stake in its production arm, which produces shows like Love Island and Coronation Street.

The broadcaster plans to deploy its ITVX platform in time for the FIFA World Cup next month. AJ Bell chief investment officer Russ Mold said ITV faces a number of challenges, such as reducing reliance on advertising and reducing the number of people using traditional TVs in the long term.

Panmure Gordon analyst Jonathan Barrett said a direct sale of the Studios division was “unlikely” given its operational and strategic value to ITV. He added, “However, the sale of the stake will shed light on the value of the content business and highlight how low the broadcast and video-on-demand (VOD) operations are priced.”

Shore Capital analyst Roddy Davidson said the commercial logic behind the sale of the stake in ITV Studios was “questionable”. He said: “Being an integrated producer and broadcaster is a commercially and competitively valuable feature of ITV, so splitting the business would be an undesirable strategy.”

FTSE 100 rose by 0.9%, or 61.45 points, to 6920.24 points. FTSE 250 added 2.76%, or 470.02 points, to 17,502.84 points. Chancellor Jeremy Hunt wasted no time in reversing most of the tax cuts introduced in last month’s mini-budget by his predecessor, Kwasi Kwarteng.

Shares of Barratt Developments rose 3.8%, or 13 pence, to 360 pence.

Shares of Barratt Developments rose 3.8%, or 13 pence, to 360 pence.

Laura Suter, head of personal finance at AJ Bell, said the announcement abruptly ended Trussonomics. “The chancellor made it clear that government departments will need to find more funds to save money, which sounds like austerity in all but name,” she added.

STOCK CLOCK: Chapel down

Chapel Down stock shone, rejoicing in the bumper harvest. An English wine producer has reported a bountiful harvest of key sparkling wine grapes such as Chardonnay, Pinot Noir and Pinot Meunier. The Kent-based company expects to produce about 2 million bottles after this year’s harvest, which began in late August. Boss Andrew Carter reaffirmed the group’s goal of doubling the size of the business by 2026. Shares rose 6% to 26.5 pence.

Housing builders seemed to breathe a sigh of relief as last month’s stamp duty changes were one of the few measures the chancellor didn’t touch.

Shares in Barrat Developments rose by 3.8%, or 13 pence, to 360 pence, Persimmon rose by 4.8%, or 58.5 pence, to 1269.5 pence and Taylor Wimpy rose by 3.8 percent, or 3.32 points, to 91.28 points.

pharmaceutical giant GSK also helped boost London’s main index as shares rose 0.3 percent, or 3.8 points, to 1354 after its drug Menveo was approved by US regulators for use in patients with meningitis.

Rival AstraZeneca rose 0.5%, or 44 pence, to 9862 pence, receiving a vote of confidence from analysts at Shore Capital, who issued a ‘buy’ recommendation and said the company’s cancer research remains a key driver of gains.

HELL Shares fell 1.2%, or 5.6p, to 449.45p, despite the oil giant agreeing to buy U.S. renewable natural gas producer Archaea Energy for £2.9bn. BP expects the deal will help double its biogas profits to around £1.8bn by 2030.

Mike Ashley stock Fraser Group rose 2.7%, or 17 pence, to 658 pence after the retailer urged MySale investors to back the takeover bid. Frasers, which also owns Sports Direct and Jack Wills, is the Australian fashion firm’s largest shareholder through Ashley, who owns a 55.34% stake.

Credit: www.thisismoney.co.uk /

- Advertisement -

Recent Articles

Related Stories