ITV (LON:ITV) the UK national broadcaster, which features in the Compound Income
Portfolio, has announced full year results today. Strangely these seem to be missing from Investegate this morning so in case you missed them. These seem slightly
ahead of forecasts with earnings coming in at 16.5p v 16.1p forecasts.
The total dividend did however look light of forecasts at 6p for the
year compared to forecasts of 7.31p, although confusingly they said it
was ahead of their previous guidance. They have however announced a
special dividend of 10p so perhaps analysts had factored in something
for a special dividend, but if so clearly not as much as they have
announced. I note they did also pay a special last year of 6.25p sop the
total pay out of 16p is up a juicy 46% this year to give a yield of
6.4% on a 250p share price.
They were positive on the outlook but
suggested that their Q1 ad. revenue would be flat due to the timing of
the Euro football championships which the market seems to have taken
badly and marked the shares down first thing. They do however say they
expect to outperform the broader advertising market again this year.
As
for the shares, taking current forecasts for the coming year, although
given the beat I guess there could be upgrades, they trade on a fair
looking 14x with a basic yield likely in excess of 3% and possibly up to
twice as much if they should pay another special at a similar level to
this year. So it still looks good to me and in fact is trading close to
the bottom of its recent trading range, so Mr. Market's negative reaction
today may be offering a longer term buying opportunity - unless I'm
missing something.
Jamie
Twitter: @Compoundincome
Website: Compoundincome.org
