LONDON, May 14 (Reuters) – British broadcaster ITV said on Thursday it remained in “active discussions” to sell its media and entertainment division to Comcast’s Sky, as it forecast a boost in advertising revenue from the World Cup in June and July.
The “Coronation Street” broadcaster said in November it was in talks to sell its M&E unit to pay-TV group Sky in a deal that would value the business at 1.6 billion pounds ($2.16 billion).
Reuters reported on Wednesday that the deal would include a payout dependent on the ITV unit’s performance, with two sources putting the earn-out portion at 200 million pounds.
ITV said on Thursday its total external revenue grew 1% in the first quarter, as growth in its production and digital revenues more than offset a 1.5% decline in linear advertising.
It forecast a strong boost in ad revenue from the soccer World Cup, which begins in June, saying it expected total advertising revenue to rise by around 10% in the April-June quarter, followed by a “strong” July.
“While we are monitoring the ongoing difficult geopolitical environment, we are focused on what we can control and remain on track to deliver our full year guidance of good revenue growth in ITV Studios and strong profitable digital revenue growth in M&E,” Chief Executive Carolyn McCall said.
($1 = 0.7398 pounds)
(Reporting by Paul Sandle; Editing by Muvija M and Sarah Young)
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