Equities Update: AstraZeneca, ITV…

Astra profits rise, outlook boosted

Adam Vettese, Market Analyst at eToro, says: “AstraZeneca is once again proving quite literally that they have just the medicine for investors with another impressive update. Sales continued to boom for the firm’s suite of cancer drugs with that division now a huge $5.3 billion per year juggernaut making up over 40% of sales. Total revenue guidance has been raised and is now expected to be in the mid teens. Astra is reaping the benefits of a priority focus on a strong pipeline of upcoming drugs and this continues to be the case going forward.

“Shares made a new record high earlier this year and now sit slightly off that level but if this kind of profit growth is to continue, then shareholders will likely expect the price to push on even further. The dividend has also been bumped up which is always welcome news for investors.”

ITV profits jump but the pressure is now on to deliver prime time content

Mark Crouch, Market Analyst at eToro, says: “Following a profitable Euros campaign, ITV has reported a 40% increase in profits. ITV studios, ITV’s centre piece, was impacted by the writers and actors strike in the US, meaning total revenues fell by 3%, however the company reported growth in total advertising revenue, while ITVX continues its impressive rise.

“With terrestrial viewing numbers in decline, the likelihood that ITV would turn to increase investment into ITVX was inevitable. And the numbers seem to support that. The company’s on-demand streaming platform ITVX notched up an increase in streaming hours by 15%, with monthly active users and advertising revenues both jumping by 17%.

“In the world of streaming, content is king, and while the Euros gave ITV a well-needed boost in revenues, it was only temporary and now the company needs to rely on its own content. Competition between on-demand content creators is fierce, and new players are emerging on a regular basis. Shows like Love Island as well as a number of popular ITV dramas continue to deliver strong viewing figures but whether they will cut the mustard over the long term remains to be seen.”