Carlton fell this morning on the back of reports that it could have its credit standing downgraded to junk status, as the decline in advertising spend continues to hit revenues at the ITV company. At 3pm, its stock was trading at 159.5p, while Granada stood at 85p.
Carlton has net debt of £487m and with revenue projections worsening, its credit status could be reduced early in autumn. This would make it more expensive for Carlton to borrow, putting more pressure on profits.
Granada came under further pressure as it was revealed that it was the latest company to have its accounting practices called into question for so called "controversial" practices.
Granada also hit by the news that its chief executive Steve Morrison is set to resign within the next three weeks.
The two ITV companies have not been helped by recording new lows in terms of audience figures. In May, ITV was beaten by the BBC in the early evening peak-time slot for the first time.
BSkyB was also hard hit, falling 6.19% to 553p. Elsewhere in the media sector, the Daily Mail & General Trust was down 4.87% to 507p; Emap was down 1.66% to 652p; Financial Times publisher Pearson was down 3.22% to 571p; and Reuters was down 5.58% to 245.25p.
Among the advertising stocks, Lord Bell's Chime Communications was the only one to have rudely risen. It was still up 8.8%, or 5p, to 61.5p while all else in the sector fell.
WPP Group was down 4.38% to 458.5p; Carat-owning Aegis was down 2.34% to 73p; and Cordiant Communications was down 6.2% to 60.5p.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
.jpg)
.jpg)