As I used to be searching for progress shares to assist future-proof my holdings, one choose that I got here throughout was ITV (LSE: ITV).

You may – like me, at the beginning – be questioning how ITV matches into progress inventory territory. Let me break it down.

Iconic broadcaster

I’ve many fond recollections – earlier than the world of digital TV – of watching ITV packages with my dad and mom, siblings, and even grandparents. Steeped in historical past and status within the UK tv market, ITV has grown to develop into the most important industrial broadcaster within the nation. It nonetheless continues to churn out favourites corresponding to Coronation Avenue, on air for many years, in addition to more moderen icons like I’m a Movie star…

Regardless of ITV’s recognition, the shares haven’t had the very best time in recent times. Over a 12-month interval, they’re up 9% from 71p right now final yr, to present ranges of 78p.

Latest woes and dangers to notice

As I touched upon earlier, the digital revolution has hampered extra conventional broadcasters like ITV. Having the ability to entry a lot of content material at their fingertips, at any time when they need, has led shoppers to shift in direction of different platforms. The most well-liked names embrace Netflix, Apple TV, and Amazon Prime, to say a number of. This altering of the guard has threatened ITV’s standing, and earnings and returns.

My different subject is the affect of financial volatility on promoting income. That is often a giant cash spinner for broadcasters, particularly ITV. Promoting spending is often first on the chopping block when volatility hits and companies scramble to preserve money. This has harm ITV in latest occasions, however as soon as volatility dissipates, a spending improve might enhance its earnings and progress.

Trying forward and fundamentals

I reckon thrilling progress might come from ITV’s personal streaming platform, ITVX. It has invested closely into this, in step with altering habits round the best way the world consumes content material. Indicators from its latest half-year report present this funding is paying off. Streaming hours rose 15% in comparison with the identical interval final yr.

Moreover, ITV Studios – its manufacturing enterprise – has produced some incredible content material in recent times. Stand out names embrace I’m a Movie star, and Love Island. It additionally produces content material for different platforms, which might help develop earnings and returns.

From a elementary view, the shares commerce on a price-to-earnings ratio of near eight, making the shares look extraordinarily engaging. Moreover, a dividend yield of over 6% is attractive as a passive earnings alternative. Nevertheless, it’s value noting that dividends are by no means assured.

Closing verdict

Regardless of challenges to navigate, I reckon ITV has some nice progress prospects forward. It seems to be backing itself to develop and pivot to the altering face of content material consumption, based mostly on funding not too long ago.

Along with this, as soon as financial turbulence clears, promoting spend might be one other avenue for the enterprise to develop earnings. Plus, this might additional enhance investor sentiment and doubtlessly the share price too. Moreover, the basics look engaging to me with a great entry level, and passive earnings alternative.

If I had some money to purchase some shares immediately, I’d fortunately accomplish that.