Leading shares slip back from five month high but broadcasters brighterAfter early gains, leading shares are moving away from an attempt on their record high of 15 years ago, despite an overnight surge on Wall Street.The FTSE 100 is currently down 49.03 points at 6822.77, heading away from the closing peak of 6930 it reached on 30 December 1999 at the height of the dotcom boom. Investors are awaiting more developments in Greece, as the new government attempts to tackle its debt crisis, as well as US jobs figures on Friday.We increase our 2015 TV ad growth forecast to 5.3% (previously 3.1%, consensus 2.7%) following latest feedback from UK media buyers. On 2015 estimated earnings per share we are 4.5% ahead of consensus. We think the recovery in the UK ad market will continue in 2015, and raise our 2015 earnings per share by 3% to reflect higher ad forecasts (slightly offset by programming costs).Latest feedback from UK media buyers suggests ITV’s first quarter net advertising revenue could grow by 11.8% (previously 6.5%), driven by pricing inflation and skewed government spending ahead of the election. Buyers estimate 2015 could be up 5.4%, driven by inflation and the Rugby World Cup in the third and fourth quarter. Every 1percentage point of ad growth adds 2% to ITV’s earnings per share, hence we see 5% upside risk to 2015 consensus earnings per share forecasts. Continue reading...
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