Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Stick with ITV shares for now but watch out for the weak spots
ITV (ITV) 123.9p
Gain to date: 63%
Original entry point: Buy at 76p, 30 April 2020
Our positive call on free-to-air broadcaster ITV (ITV) is handsomely in the money despite a mixed set of full year numbers on 9 March.
The company is seen as a big beneficiary of a reopening of the economy as advertising spend should increase.
Total advertising, which includes online video on demand and sponsorship, is forecast by ITV to be up an eye-catching 60% to 75% in April.
The easy comparatives should support investor interest, particularly with the delayed Euros football tournament likely to provide another fillip should it go ahead.
However, we will still keep a close eye on the shares, because some of the longer-term implications of the latest financial results are less favourable.
The company’s audience share fell and the lack of a big name programme like Love Island to bolster its streaming credentials saw online viewing drop 5%, despite having a captive audience in lockdown.
Its Britbox streaming joint venture may be growing but 2.6 million global subscribers is a drop in the ocean compared with its big global rivals in a highly competitive market.
SHARES SAYS: Short term this is still a buy but we plan to revisit the longer-term investment case later this year.