Brexit Rattles European Markets; Media Stocks Among Hardest Hit

UPDATE:  ROME — The Brexit vote rattled European markets Friday, with media stocks among the hardest hit and the pound plunging to its lowest level in 30 years.

London’s FTSE 100, which was down 4.47% at midday, subsequently picked up to close at minus 2.8%. But London’s FTSE 250 index, which is more focused on British companies and thus more representative of the U.K. economy, ended the day down 7.19%, its steepest fall since since the so-called Black Monday crash in 1987.

Meanwhile, the Milan bourse closed down 12.48%, its worse tumble in more than a decade. And the Madrid stock index suffered a more than 12% loss.

By closing of trading Friday, the Euro Stoxx 600 Media index had plunged by 7.5%. Private British TV broadcaster ITV lost more than 20% because of fears that advertisers would be pulling back. ITV chief executive Adam Crozier said in an email to staff that there would “clearly be some short-term uncertainty.” His email was posted on Twitter.

Italy’s Mediaset, owned by former Prime Minister Silvio Berlusconi, closed down 17.17%, France’s Vivendi dropped 6.25% and Murdoch-owned pan-European pay-TV Sky lost 6.6%. German conglomerate ProSiebenSat shedded 7.38%. Entertainment One, the international company that operates in Canada, the U.S., and the U.K., among other countries, ended the day down 19.2%.

International currency fluctuations have already been a drag on the earnings for the largest media conglomerates in the past two years. The promise of more volatility ahead is unwelcome news for U.S.-based companies that are increasingly banking on overseas growth to drive future earnings.

Popular on Variety

More Biz

  • Led Zeppelin Stairway to Heaven

    Department of Justice Backs Led Zeppelin in ‘Stairway to Heaven’ Copyright Case

    The U.S. Department of Justice has weighed in on the next big music copyright case on the horizon following the Katy Perry “Dark Horse” decision, and taken Led Zeppelin’s side in the long-running copyright dispute that pits the writers of the group’s anthem “Stairway to Heaven” against the publishers of the earlier song “Taurus” by [...]

  • Harvey Weinstein

    Harvey Weinstein Prosecutors Make Last-Minute Move to Bolster Case

    The Manhattan D.A.’s office is making a last-minute bid to strengthen its case against Harvey Weinstein, who is set to be tried next month on charges of rape and sexual assault. Prosecutors notified the court on Tuesday that they will seek a new indictment. The D.A.’s office wants jurors to hear from Annabella Sciorra, the [...]

  • Jeffrey Epstein

    Jeffrey Epstein's Autopsy Rules That He Died by Suicide

    Jeffrey Epstein’s death earlier this month has been ruled a suicide by hanging. The New York Times reported on Friday that the city’s medical examiner has officially made the ruling six days after Epstein was found dead in his jail cell at the Metropolitan Correctional Center in Manhattan. According to the Times, which cites a [...]

  • America Ferrera Eva Longoria

    America Ferrera, Eva Longoria and More Sign Letter to Latinx Community: 'We Will Not Be Broken'

    America Ferrera, Eva Longoria and more have signed a letter published in several media outlets on Friday standing in solidarity with the Latinx community. In response to the heightened tension surrounding President Trump’s immigration agenda, the El Paso shooting that targeted Latinx people and the ICE raids in Mississippi, the letter addresses the language used [...]

  • Research Firm Screen Engine/ASI Acquires TicktBox

    Screen Engine/ASI Acquires TicktBox, an Entertainment Marketing and Ticketing Startup

    Screen Engine/ASI, a market research firm that specializes in focus-group testing of movies and TV pilots, has acquired ticktBox, which operates a digital marketing and ticketing platform used by movie distributors, exhibitors, and TV networks. Terms of the deal, which closed Aug. 9, weren’t disclosed. With ticktBox, SE/ASI will have one of the largest databases of [...]


    Eric Reid, Jemele Hill – and Colin Kaepernick? - Take Jay-Z to Task Over NFL Partnership

    When news of the presumably lucrative entertainment and social-justice deal between Jay-Z’s Roc Nation and the NFL leaked on Tuesday, initially there was a surprising lack of public reaction or outcry. But after a press conference where Jay and NFL commissioner Roger Goodell officially announced the deal at Roc Nation’s New York offices yesterday — [...]

More From Our Brands

Access exclusive content