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LONDON, ENGLAND – MARCH 10: Piers Morgan seen leaving his West London house to take his daughter Elise to high school
Picture by MWE/GC Pictures
ITV shares slid 3.8% Wednesday following the resignation of high-profile presenter Piers Morgan over feedback he made about Meghan, the Duchess of Sussex, and her bombshell interview with Oprah Winfrey.
The British broadcaster confirmed Morgan’s departure in a press release on Tuesday, hours after he stormed off the set of the “Good Morning Britain” present, which has been drawing document market share this month, following criticism of his remarks.
Tuesday’s present drew greater than 41,000 complaints to the U.Okay.’s tv regulator Ofcom, which has since confirmed that it’s investigating the feedback. Morgan accused Meghan of mendacity about having suicidal despair and being denied assist throughout her time as a member of the royal household.
ITV additionally on Tuesday reported a 33.5% fall in working revenue for 2020 and a pointy drop in advert revenues, with analysts noting considerations that an accelerated shift to streaming providers was making life troublesome for broadcasters reliant on conventional tv promoting.
Roddy Davidson, media analyst at Shore Capital who covers the inventory, informed CNBC Wednesday that Morgan’s departure could also be enjoying an element within the continued decline for the corporate’s shares, however prompt Tuesday’s earnings had been nonetheless the primary driver of share worth motion, together with potential profit-taking by buyers after a robust closing six months of the 12 months.
“Good Morning Britain is a vital a part of the daytime schedule, and Piers Morgan is a little bit of a marmite character, however he’s fairly watchable for that, whether or not you agree or disagree with him,” Davidson mentioned.
“I assumed the disappointing facet of yesterday’s outcomes was the truth that they did not pay a closing dividend. The debt has considerably diminished, the corporate is in sturdy form financially, it’s money generative, and the feedback had been definitely extra constructive with regard to the promoting income line bouncing again as Covid restrictions are lifted.”
Davidson mentioned the dearth of a dividend cost was a “missed alternative” to reward shareholders after a turbulent 12 months, during which the cancellation of main exhibits resembling “Love Island” and the acceleration of viewers transitioning to streaming providers weighed on ITV’s viewership.
Russ Mould, funding director at stockbroking platform AJ Bell, additionally famous that whereas the Morgan controversy could have a right away impression, buyers ought to stay centered on the basics.
“I am certain that that program is an enormous promoting spinner for them, as a result of it is extremely well-watched. He definitely appears to have been necessary to that program’s success and it is going to be intriguing to see the way it continues with out him,” Mould informed CNBC on Wednesday.
Nonetheless, he prompt that the corporate’s stiff competitors within the streaming market and difficult advert atmosphere, together with takeover hypothesis, would stay the important thing drivers of share worth exercise.
“In the event you’re bullish on the inventory, you are searching for an financial upturn, you are searching for an promoting upturn, and also you’re searching for any person possibly to purchase it for its very wealthy content material library,” he mentioned.
“The bear circumstances are a tricky financial atmosphere, stacks of competitors and a mannequin that’s probably being severely challenged over time.”
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