UK Media Set for Weakest Growth since 2012, Says KPMG
December 21 2016 - 8:54AM
Dow Jones News
By Simon Zekaria
LONDON--The U.K. media industry is set for its weakest growth in
four years in 2016, as economic uncertainty following the country's
vote to leave the European Union knocked advertisers' spending,
KPMG said Wednesday.
"Post-Brexit we have seen a loss of momentum which has placed
the media sector on course for its weakest calendar year of growth
since 2012," the financial services company said in a report.
The U.K. voted to leave the EU in a referendum on June 23.
Advertisers reined in spending between July and
September--despite spending "strongly" in the first half of
2016--with only 16% of marketers reporting a rise in advertising
budgets in the third quarter.
"U.K. marketing executives reported that rising economic
uncertainty had weighed heavily on post-Brexit budget setting,
leading to a wait-and-see approach to spending plans," KPMG
said.
Some U.K. media companies have signaled wariness over the Brexit
vote.
ITV PLC, the U.K.'s largest over-the-air broadcaster by revenue
and a company for whom television advertising is central, is
targeting savings of 25 million pounds ($30.9 million) in 2017, in
the wake of the referendum.
-Write to Simon Zekaria at simon.zekaria@wsj.com
(END) Dow Jones Newswires
December 21, 2016 09:39 ET (14:39 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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