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1. Company Snapshot

1.a. Company Description

ITV plc, an integrated producer broadcaster, creates, owns, and distributes content on various platforms worldwide.It operates through Media & Entertainment, and ITV Studios segments.The Media & Entertainment segment broadcasts various contents on its family of free-to-air channels, including ITV, ITV2, ITV3, ITV4, ITVBe, ITV Encore, CITV, ITV Breakfast, CITV Breakfast, and various related +1 and HD equivalents; and offers television advertising services.


It also delivers content through linear television broadcasting, as well as on the ITV Hub, catch up services on pay platforms, and through direct content deals.In addition, this segment offers online advertising, HD digital channel on pay platform, and ITV Choice subscription services, as well as licenses DTT Multiplex A.The ITV Studios segment creates and produces programs and formats that include drama, entertainment, and factual entertainment for its own channels and other broadcasters.


It also operates as an unscripted independent producer of content in the United States; and produces content for local broadcasters and international OTT platforms in Australia, Germany, France, Italy, the Netherlands, Sweden, Norway, Finland, and Denmark.In addition, this segment engages in formats and distribution ITV's finished programmes, and formats and third-party content internationally, as well as finances productions.The company also engages in the development of platform, broadband, transactional, and mobile services; operation of digital television channels; operation of Freeview Multiplex A; rights ownership and distribution of television programs and films; and scheduling and commissioning of television programs.


ITV plc was founded in 1955 is based in London, the United Kingdom.

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1.b. Last Insights on ITV

ITV plc's recent performance has been positively driven by hopes of a potential deal with Comcast's Sky, which could expand the US giant's footprint in Europe and allow ITV to focus on its studio operations. Institutional investors, who hold a significant stake in the company, have been rewarded with a substantial market cap gain. The company is also expected to benefit from its popular shows, such as "Love Island" and "The Reluctant Traveler". A potential $2.1 billion deal with Comcast could further boost ITV's position in the market, amid fierce competition from streaming platforms like Netflix.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Why The Narrative Around ITV Is Shifting Amidst Media Sale Talks and Analyst Revisions

Nov -23

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Institutional investors are ITV plc's (LON:ITV) biggest bettors and were rewarded after last week's UK£494m market cap gain

Nov -13

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Comcast Eyes $2.1 Billion Deal. It’s All About Fierce Competition From Netflix.

Nov -07

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Labubu, Opendoor, Airbnb, Nvidia: What's trending in markets

Nov -07

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Comcast’s Sky in Talks to Buy Broadcasting Arm of U.K.’s ITV

Nov -07

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When Should You Buy ITV plc (LON:ITV)?

Oct -28

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Barclays (LSE:BARC): Evaluating the Valuation Picture After Strong Share Price Gains

Sep -09

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Angle PLC Announces Change of Adviser

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.20%)

6. Segments

Media & Entertainment

Expected Growth: 2.5%

ITV plc's Media & Entertainment segment growth of 2.5% is driven by increasing demand for online content, expansion of streaming services, and growth in advertising revenue. Additionally, the company's focus on producing high-quality content, such as drama and entertainment shows, has attracted a larger audience, contributing to the segment's growth.

ITV Studios

Expected Growth: 1.8%

ITV Studios' 1.8% growth driven by increasing demand for content, expansion into new genres, and strategic partnerships. Strong pipeline of productions, including drama and entertainment shows, contributes to growth. Additionally, ITV's focus on digital transformation and investment in streaming capabilities enhances Studios' revenue potential.

7. Detailed Products

ITV Studios

ITV Studios is a global production company that produces content for ITV and other broadcasters, as well as for streaming services and other platforms.

ITV Broadcasting

ITV Broadcasting is responsible for the operation of ITV's family of channels, including ITV, ITV2, ITV3, ITV4, and CITV.

ITV Commercial

ITV Commercial is responsible for selling advertising airtime across ITV's channels, as well as providing advertising solutions for brands.

ITV Studios Global Entertainment

ITV Studios Global Entertainment is a global distributor of ITV Studios' content, selling programming to broadcasters and streaming services around the world.

ITV Online

ITV Online is responsible for ITV's digital products, including the ITV Hub, a catch-up service that allows viewers to watch ITV programming online.

8. ITV plc's Porter Forces

Forces Ranking

Threat Of Substitutes

ITV plc faces moderate threat from substitutes, as viewers have alternative options for entertainment and news, such as streaming services and online news platforms.

Bargaining Power Of Customers

ITV plc has a large and diverse customer base, which reduces the bargaining power of individual customers, making it difficult for them to negotiate prices or demand customized services.

Bargaining Power Of Suppliers

ITV plc relies on a diverse range of suppliers, including content providers, advertisers, and technology vendors, which reduces the bargaining power of individual suppliers.

Threat Of New Entrants

The broadcasting industry is highly competitive, and new entrants can easily disrupt the market with innovative content and business models, posing a significant threat to ITV plc's market share.

Intensity Of Rivalry

The broadcasting industry is highly competitive, with many established players and new entrants vying for market share, leading to intense rivalry and competition for ITV plc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 30.42%
Debt Cost 3.95%
Equity Weight 69.58%
Equity Cost 11.18%
WACC 8.98%
Leverage 43.73%

11. Quality Control: ITV plc passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
M6

A-Score: 7.0/10

Value: 7.6

Growth: 2.3

Quality: 7.2

Yield: 10.0

Momentum: 5.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
TF1

A-Score: 6.9/10

Value: 8.2

Growth: 3.6

Quality: 6.4

Yield: 9.4

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Orange Polska

A-Score: 6.5/10

Value: 7.3

Growth: 4.1

Quality: 4.5

Yield: 8.1

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
SES

A-Score: 6.1/10

Value: 8.6

Growth: 2.1

Quality: 3.2

Yield: 10.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
RTL Group

A-Score: 5.8/10

Value: 6.0

Growth: 2.2

Quality: 5.5

Yield: 8.8

Momentum: 7.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
ITV

A-Score: 5.4/10

Value: 6.1

Growth: 3.3

Quality: 5.5

Yield: 8.1

Momentum: 5.0

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.82$

Current Price

0.82$

Potential

-0.00%

Expected Cash-Flows