ITV (formerly Granada and Carlton)

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ITV

Ignore the programmes, look at the prospects. The City has not been a fan of ITV since it was created by the merger of Carlton Comm- unications and Granada. The shares have fallen nearly a third to end on Friday at 105.25p, leaving one of the world's pre-eminent broadcasters with a market value of just over £4bn.

But while the uninspiring programmes on ITV1, and the poor audience figures, might cause worries about short-term figures, the long- term prospects look excellent. The cost cutting since the merger will help margins, and getting rid of non-core assets will make the balance sheet look healthy. However, the biggest positive comes from regulation - with ITV likely to secure further cuts in the amount it pays the government for its licences, and hints from the regulator, Ofcom, that there could be an easing in the regime that restricts how much ITV can charge advertisers. It's a case of "never mind the quality, feel the value" with ITV