“Signs Of Recovery” At ITV

ITV’s underlying earnings fell to £151 million in Michael Grade’s first six months in charge, although this figure is £10 million higher than analysts had predicted.

Lower earnings had been expected after ITV said in a trading statement last month that it had been hit by a decline in revenues at ITV Play, the broadcaster’s quiz channel, following the furore over TV phone-ins (see Ofcom Finds ‘Systemic Failures’ In Premium Rate Phone-In Services).

At the start of the month, Channel 4 announced that it is cutting all profit-making phone-in competitions, with the exception of Deal or No Deal, where its share of future profits will go to charity from August 13 (see Channel 4 To Axe All Profit-Making Phone-In Comps).

ITV1, the broadcaster’s flagship channel, recorded a decline in net advertising revenues from £654 million a year ago to £595 million.

Revenues from outside ITV1’s net advertising income now account for 41% of total revenues, up from 39% a year ago, said ITV.

Michael Grade, ITV executive chairman, said: “I’m very pleased with progress in ITV1’s schedule performance and the outlook for revenue in Q3 is encouraging. The launch of the Autumn schedule was well received with a number of returning hit series and major events including the Rugby World Cup.

“ITV has been affected by the incidence of editorial and compliance failures which have affected the television sector. Deloitte are moving towards completion of their review of our PRTS activity and in October we will publish the findings of that review and an explanation of remedial actions. We are co-operating closely with Ofcom and ICSTIS during this process.”

Meanwhile, ITV has also appointed two non-executive directors, Agnès Touraine and Heather Killen.

Last month, Greg Dyke, former director general of the BBC, said that ITV cannot survive as an independent company, adding that its performance between 2000 and 2006 was “dismal” (see Former BBC Director General Hits Out At ITV).

ITV: 020 7843 8000 www.itv.com