Broker snap: ITV upgraded after impressive 2010

2nd Mar 2011 11:50

A strong set of results from ITV is likely to trigger earnings estimates upgrades and has made a believer out of broker Peel Hunt.The terrestrial broadcaster reported 2010 revenue of £2.06bn and pre-tax profit of £321m, beating the broker's forecasts of £1.92bn and £276.2m, respectively. Debt fell from £612m to £188m, with the company signalling the return of the interim dividend this July.The performance was driven by a strong recovery in national TV advertising, with ITV outperforming the overall TV market by 1%, according to Peel Hunt.ITV points to a good start to 2011, with booked first quarter TV ad revenue up 12% and April's year on year growth in the 8-12% range. "Despite hardening comparatives, we expect that ITV will continue to perform well as TV markets stabilise," says analyst Patrick Yau.The broker upgrades ITV to a 'buy', from 'hold', and places its target price under review.