Broker snap: Prime Markets applauds 'exceptional turnaround' at ITV

29th Feb 2012 10:37

Prime Markets has reiterates a 'strong buy' recommendation for broadcaster ITV after the company 'delivered an exceptional turnaround' amidst a tough trading environment in 2011.External revenues were up 4% to £2,140m from £2,064m in 2010, with the improvement driven by non- advertising revenues (NAR). Total non-net advertising revenues (non-NAR) jumped 11% to £922m from £829m in 2010, mainly due to revenue growth from the UK and international studios businesses. Adjusted profit before tax was comfortably ahead of market expectations of £365m at £398m, up 24% from 2010's £321m."But while the business performance headline numbers impress, it is the restructuring behind the scenes - cost savings of £20m and turning a £188m debt pile into a £45m cash pile that really set these results apart, and in the view of Prime Markets it signals to the competition that ITV is a lean and fit corporate entity ready to grab more market share," writes the broker's head of dealing, Richard Curr.Prime Markets expects the shares to deliver a near-term return to the March 2011 high of 95p "and beyond".BC