18 Aug Britain’s Broadcaster iTV plc: Blazing A Trail For Australian Video Media
Our April 2016 review of Britain’s video broadcaster iTV plc illustrates that it has delivered operating, financial and share price performance that is impressive and contrary to that which would be expected in what is broadly considered to be a technologically and structurally challenged industry.
The transformation of iTV plc has succeeded under the stewardship of Chairman – Mr. Archie Norman (adviser to Wesfarmers Ltd in the turnaround of Coles supermarkets) and CEO – Mr. Adam Crozier (known for his turnaround of the Royal Mail Group). We consider that a simple focus on the delivery of operating leverage has changed the fortunes of iTV plc and its investors.
We note John Malone’s Liberty Global Inc’s move to secure a 9.9% equity interest in iTV. We expect that Liberty would look to leverage iTV’s video content in its operations that span 14 countries with 24.5 million customers.
Our analysis acknowledges a developing strategic entanglement between the challenged Ten Network Holdings Ltd and Pay TV operator Foxtel. We also note rumours of a possible sale of Telstra’s 50% equity interest in Foxtel. We consider that changes to Foxtel’s management of operations and content suggest to us that further corporate and strategic developments may, in time, provide value capture opportunities.
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