Granada May Challenge ITC Ad Growth Forecasts

Granada is believed to be planning to challenge financial forecasts made by the Independent Television Commission (ITC) before it reapplies for licences for two of its ITV franchises, London Weekend Television and Granada Television.

Earlier in the year, the ITC set out the conditions under which each of the ITV companies could reapply for its licence by valuing them in line with the current television market (see GMTV Sees Cut In Treasury Payment). These valuations are calculated primarily on the basis of percentage of qualifying revenue (PQR), where qualifying revenue is the amount gained for the broadcaster through advertising revenue. In calculating this, the ITC forecast that terrestrial advertising revenue would grow by a real annual average of 3%.

It has been reported that Granada is not satisfied with these figures and has therefore decided to delay its franchise reapplications for another two years and in the meantime challenge the Commission over its predictions. However, a spokesperson for Granada could not confirm that this is definitely the case.

In a recent report from Zenith Media, UK advertising revenue as a whole was predicted to grow by 2.2% next year.

Granada: 0171 261 3280