Shares in ITV surged on Wednesday, as the U.K. television broadcaster showed benefits from rising revenue from its studios division that produces shows including “Love Island,” as well as a rebound in advertising revenue.
rose 13% as the company reported a 28% rise in nine-month revenue, or an 8% gain compared with 2019. Studio revenue jumped 32%, and advertising revenue surged 30%.
ITV said the advertising performance will help profit to cash conversion of 60%, up from its previous estimate of 30%.
ITV’s studios have produced shows including “Vigil” for BBC, “Physical” for Apple TV+, “Snowpiercer” for Netflix, and “Love Island,” which airs on CBS
in the U.S. and ITV in the U.K.
Marks & Spencer
was also sizzling, up 16% as the U.K. retailer upgraded profit guidance for the second time since August. “Rather than a department store which sells food as an extra, Marks is metamorphosing into a grocery powerhouse which sells clothes and homewear as add-ons,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, pointing to the 10% rise in food sales from 2019 levels as clothing and home revenue fell 1%.
The FTSE 100
rose 0.6% in afternoon trade, defying the global selloff after stronger-than-forecast U.S. inflation data. A rotation into defensive plays including drugmakers AstraZeneca
lifted the U.K. index.