ITV advertising forecasts cut
Forecasts for advertising revenues at ITV next year have been cut amid fears of a 1.5% fall in revenues during 2001. It follows poor performances by advertisers in a number of sectors.
LONDON (Brand Republic) - Forecasts for advertising revenues at ITV next year have been cut amid fears of a 1.5% fall in revenues during 2001. It follows poor performances by advertisers in a number of sectors.
The forecasts, made by Neil Blackley, head media analyst at Merrill Lynch who last year prompted a £1.7m fall in Granada Media shares after he slashed its profit forecasts, has seen Merrill Lynch lower its 2001 advertising growth predictions for ITV from 3% to 1.9%.
Blackley said he expected ITV advertising revenue to fall by between 9% and 10% in January compared with last year. He warned of a steady decline in advertising until late June.
Advertisers in the soft drink, automotive, newspaper and dotcom sectors are expected to perform badly after March. This is expected to affect the TV network’s advertising revenues.
The slowdown is also expected to hit Granada Media, ITV’s biggest player, and its ITV rival Carlton Communications. Merrill Lynch has reduced Granada’s profit forecast from £101m to £79m. Carlton’s pre-tax profit forecast was reduced to £36m from £68m.
Granada’s shares climbed 7.5p to 397p yesterday after the announcement -- this morning they have slid to 387p. Carlton’s share price improved 7.5p to 548.5p yesterday. This morning they had also fallen, to 527p.
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