ITV Remains in Active Deal Talks with Sky, Expects Strong Q2 Revenue
ITV's Strategic Moves and Financial Outlook
Ongoing Negotiations with Sky
LONDON, May 14 (Reuters) - British broadcaster ITV said on Thursday it remained in "active discussions" to sell its media and entertainment division to Comcast's Sky, as it forecast a boost in advertising revenue from the World Cup in June and July.
The "Coronation Street" broadcaster said in November it was in talks to sell its M&E unit to pay-TV group Sky in a deal that would value the business at 1.6 billion pounds ($2.16 billion).
Deal Structure and Earn-Out Details
Reuters reported on Wednesday that the deal would include a payout dependent on the ITV unit's performance, with two sources putting the earn-out portion at 200 million pounds.
Financial Performance and Revenue Forecast
First Quarter Results
ITV said on Thursday its total external revenue grew 1% in the first quarter, as growth in its production and digital revenues more than offset a 1.5% decline in linear advertising.
Advertising Revenue Boost from World Cup
It forecast a strong boost in ad revenue from the soccer World Cup, which begins in June, saying it expected total advertising revenue to rise by around 10% in the April-June quarter, followed by a "strong" July.
Management Commentary
"While we are monitoring the ongoing difficult geopolitical environment, we are focused on what we can control and remain on track to deliver our full year guidance of good revenue growth in ITV Studios and strong profitable digital revenue growth in M&E," Chief Executive Carolyn McCall said.
Additional Information
($1 = 0.7398 pounds)
(Reporting by Paul Sandle; Editing by Muvija M and Sarah Young)
