British media group Carlton Communications – the second largest shareholder in commercial network ITV – is one of a number of firms facing an embarrassing expulsion from the FTSE 100 index.
Battered by tumbling ad revenue and concerns over digital terrestrial broadcaster ITV Digital (jointly owned with Granada Media), Carlton’s share price has dropped for seven consecutive sessions.
Nearly 30% of its stock value has been wiped out since the start of August, as ITV ad revenue has failed to pick up. Carlton’s current valuation stands at £1.73 billion ($2.52bn).
The FTSE 100 index is reviewed next week. Expulsion would not help Carlton, as it could no longer attract the institutional investment that gravitates towards blue chip stock.
News source: CampaignLive (UK)