This time Maynard Paton and Roland Head discuss ITV and the investment potential of commercial television.

Roland owns ITV making his first purchase in 2019 with subsequent purchases in 2020. Roland believes ITV is currently undervalued, making the case that the market is undervaluing the studio side of the business and that ITV’s shift to digital streaming is actually going much better than they are being credited for. This Combined with a 6% yield makes it an attractive position for Roland’s dividend-producing portfolio.

This is a great analysis of a company that perhaps many have dismissed due to the rise of streaming but ITV has done a fairly good job of navigating this transition with the rise of the studio business becoming a large part of their revenue.

Roland shares the bull case for ITV while Maynard looks at the company with his trademark forensic analysis of ITVs strategy, financials and management.

Is Maynard convinced, or has Roland missed something that could change his mind?

Timestamps:

2:15 Overview of ITV’s recent financials and strategy.

3:35 Discussing the 6% dividend yield.

5:00 Roland’s bull case for ITV.

6:20 Discussing the financial record of ITV.

8:15 Discussing the studio’s part of the business.

10:00 Discussing other income streams such as high-value scripted content.

12:20 The KPIs for the studios.

13:30 Discussing the traditional advertising side of the business.

15:25 Shifting to ITVs new streaming platforms ITVX, Planet V and Brit Box.

21:35 Discussing the valuation of ITV and pension deficits.

29:25 Discussing the revenue per employee.

30:15 Discussing the Debt of ITV.

32:00 Discussing current management, AGM votes and CEO Carolyn McCall’s remuneration.

 36:45 ITV’s relationship with System 1.

38:30 Final thoughts and wrap up.

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Maynard & Roland.

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