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Brexit Ad Campaign Seen Providing a Boost for ITV and JCDecaux

Brexit Ad Campaign Seen Providing a Boost for ITV and JCDecaux

(Bloomberg) --

Brits may be feeling Brexit fatigue, but a government campaign to better inform people ahead of the U.K.’s looming departure from the European Union could prove a boon for two stocks, according to Liberum analyst Harry Read.

Broadcaster ITV Plc and outdoor advertiser JCDecaux SA are set to be the main beneficiaries of an advertising campaign that encourages the British public to be prepared to leave the EU by Oct. 31, Read wrote in a report. The exercise could reportedly cost as much as 100 million pounds ($121 million), according to the BBC.

Television and outdoor will be allocated 30% and 10% of the total marketing budget, respectively, Read wrote. For ITV, that will increase the chance of advertising growth beating guidance in both the third and fourth quarters, he said.

All forms of media publishers should benefit from the additional spend, but given their dominant positions in the U.K. market, ITV and JCDecaux should receive the biggest boost, Read wrote.

The timing of the announcement also means that the spending won’t be in guidance for either of the companies.

ITV shares rose 0.3% in early London trading, while JCDecaux added 0.7% in Paris. Both stocks could use a boost, with the former having fallen 6.8% in the year to date, and the latter being little changed.

To contact the reporter on this story: Simon Foy in London at sfoy8@bloomberg.net

To contact the editors responsible for this story: Beth Mellor at bmellor@bloomberg.net, Paul Jarvis

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