ITV (LSE: ITV) shares are a popular investment at the moment. I imagine a lot of investors are looking at this company as a play on the upcoming football World Cup (ITV’s showing 51 matches).
Are they worth buying for my ISA? Let’s take a look at the set-up ahead of the tournament.
A revenue booster
The World Cup should be a nice little revenue booster for ITV, because this event tends to lead to an increase in advertising revenues.
The company’s certainly expecting to see advertising revenues rise in the months ahead. In its most recent trading update (14 May), it said that it expects total advertising revenues (TAR) growth to be around 10% in the second quarter of 2026.
It also expects a strong July. So Q3 growth could be decent as well.
It’s worth noting that ITV Media rolled out a rare three-tier structured sales window ahead of the tournament to lock in upfront commitments from major brands. Some companies that are likely to be advertising heavily throughout the tournament include M&S, Chase, and Google.
How are the longer-term prospects?
Of course, it goes without saying that the tournament’s only going to provide a temporary boost to revenues. So what do the company’s prospects look like in the medium and long term?
Well, this is where things are a little mixed. On one hand, ITV Studios – which produces content – has solid prospects. It’s making shows for other platforms (eg Netflix, Disney+) and having success today.
On the other hand, the company’s Media & Entertainment business could struggle. Because these days, people are not spending a lot of time watching regular TV. Instead, they’re watching Netflix, YouTube, and other streaming services.
It’s worth noting that while analysts expect group revenue growth of about 3.6% this year (boosted by the World Cup), they only expect top-line growth of around 1% next year. I find it hard to get excited about this level of growth (especially when there are so many companies growing at 20% a year or more).
Should I buy?
Now, this doesn’t mean the shares aren’t worth considering. They do look relatively cheap today – the price-to-earnings (P/E) ratio is only around 10.
Meanwhile, there’s a chunky dividend yield on offer. With analysts expecting dividend payments of 5p per share for 2026, the yield’s a little over 6% at the moment so the shares could be a decent source of passive income.
With the average analyst 12-month price target sitting at 83p however (roughly where the share price is today), I just feel there are better opportunities for me in the market right now. While this stock could provide solid returns from here with its larger-than-average dividends, I see more potential in other names.
Should you invest £5,000 in ITV right now?
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Edward Sheldon does not hold any positions in the companies mentioned
