ITV has reported an adjusted pre-tax profit fall of 41% in 2008 to £167 million and a 32% drop in earnings before interest, tax and amortisation to £211 million.
Annual revenues fell 3% from 2007 to £2.03 billion. Advertising revenues fell 4% to £1.43 billion, compared to a 5% fall in the overall TV market, while global content revenues increased 10% to £622 million and online revenues were up 9% to £33 million.
The broadcaster also announced the loss of 600 jobs amid plans to cut £65 million from its programme budget, as well as selling Friends Reunited and SDN.
ITV’s share of the market in 2008 was 43.8%, with ITV1 advertising falling by 8% to £1.13 billion, which was balanced by advertising on ITV’s digital channels – up 16% to £242 million.
However, the broadcaster’s online earnings before interest, tax, depreciation and amortisation dived from a £12 million loss in 2007 to £20 million in 2008.
ITV said this was due to a fall in profits at Friends Reunited, investment in itv.com and costs relating to the closure of Kangaroo, the joint VoD venture with Channel 4 and BBC Worldwide.
ITV’s chief executive, Michael Grade, said: “Current conditions in the advertising market are the most challenging I have experienced in over 30 years in UK broadcasting. Our priorities have to be aligned to the changed economic context.”
