ITV the UK national broadcaster which features in the Compound Income Portfolio has announced full year results today. These seem slightly ahead of forecasts with earnings coming in at 16.5p v 16.1p forecasts. The total dividend did however look light of forecasts at 6p for the year compared to forecasts of 7.31p, although confusingly they said it was ahead of their previous guidance. They have however announced a special dividend of 10p so perhaps analysts had factored in something for a special dividend, but if so clearly not as much as they have announced. I note they did also pay a special last year of 6.25p sop the total pay out of 16p is up a juicy 46% this year to give a yield of 6.4% on a 250p share price.
They were positive on the outlook but suggested that their Q1 ad. revenue would be flat due to the timing of the Euro football championships which the market seems to have taken badly and marked the shares down first thing. They do however say they expect to outperform the broader advertising market again this year.
As for the shares, taking current forecasts for the coming year, although given the beat I guess there could be upgrades, they trade on a fair looking 14x with a basic yield likely in excess of 3% and possibly up to twice as much if they should pay another special at a similar level to this year. So it still looks good to me and in fact is trading close to the bottom of its recent trading range, so Mr. Markets negative reaction today may be offering a longer term buying opportunity - unless I'm missing something. It still scores highly on the Compound Income Scores with a score of 96 and as such seem likely to remain in the portfolio at the next review due at the end of March.