Independent Television (ITV) Essay Example | Topics and Well Written Essays - 1500 words

Independent Television (ITV) - Essay Example Companies Strengths and Weaknesses ITV Comprehensive income statement year ended 31st December 2011 indicated that, the company was able to attain a cost saving of twenty million pounds through its wastage and efficiency program (ITV, 2012). It was predicted that the company was going to attain another cost saving of twenty million pounds by the end of 2012 fiscal year (ITV, 2012). The report further indicated that, ITV was able to obtain net advertisement revenue of 1% by the end of 2011 fiscal year (ITV, 2012). During this year, ITV subsidiaries reported higher positive growth, for example, 1% growth was obtained from viewers followed by a 10% in digital growth (ITV, 2012). The report indicates that ITV was able to attain 21% growth through online revenues which translates to thirty four millions pounds as on 31st December 2012. Additionally, the company was able to achieve a 44% growth through distribution of its content (ITV, 2012). Connectively, revenue of thirty five million po unds was obtained from international production and another seven million pounds from investments (ITV, 2012). However, despite having a positive growth, the company has also been faced with some challenges. This is because, by the end of 2011, the company revenues from distribution business declined substantially by four million pounds (ITV, 2012). In above connection, another 5% decline in growth was reported by the end of 2011. Additionally, the company incurred a loss of thirty nine million pounds; the loss was attributed to bond that was purchased during this period (ITV, 2012). On the contrary, the financial statement of Wire and Plastic Product (WPP) reported operating profits of ?14.0 millions by the end of 31st December 2011, while in the previous year; the company reported... Independent Television (ITV) Independent Television was one of the ancient business networks established in the United Kingdoms in 1995 with an aim of channelling news and eradicating monopoly business that was dominated by BBC during that period. The company consists of broadcasting Channels that include the following; City television, Itv1, Itv2, Itv3 and Itv4. ITV Company sells formats and programs in the United Kingdom as well as in other parts of the world. The major sources ITV revenues emanates from sales and advertisement. Additionally the company provides online services to its clients through itv.com. Among the services being rendered by ITV include; online advertisement and online sponsorship. In above connection, the company conduct other operations through its ITV studios such as; entertainment, dramas, factual to name just but a few. In 1958, ITV directors issued 300,000 common stocks at four dollars each to the public through initial public offer.The company had been expanding across the world and has been portraying positive growth in the stock market. Therefore, based on the above report on portfolio analysis, I would advice Mike to invest his savings in ITV company because the company has higher returns that Mike can obtain and retain the rest given the fact that he is a conservative investor. Additionally, the company has lower risk exposure as indicated by its gearing ratio. Therefore, if Mike invests his savings in ITV securities he is guaranteed security of his investments.