Burt Underlines Commitment To Allen As Chief Executive
ITV chairman, Sir Peter Burt, has once again reaffirmed his commitment to the broadcaster’s embattled chief executive, Charles Allen, telling shareholders and staff that replacing the broadcast boss does not feature on his to-do list.
Burt has also quashed rumours that former BBC chief executive, Greg Dyke, is being groomed as Allen’s replacement. Speaking to the Observer over the weekend Burt stated: “I haven’t spoken to Greg Dyke for months and I have no plans to speak to him. I have no intention of appointing Dyke as chief executive.”
The recently appointed ITV chairman was understood to have met Dyke in April, with reports suggesting that the installation of the populist broadcast head would appease both shareholders and City investors following a slump in the company’s fortunes under Allen’s command (see Dyke In Talks To Take Top Job At ITV).
It is understood that ITV could face a deficit of around £100 million in revenue due to an increasing amount of big-brand advertisers seeking to negotiate more competitive deals on the back of a decline in audience share for the UK’s largest commercial broadcaster (see Dip In Share Leaves ITV Facing Revenue Shortfall).
ITV recently launched a range of cost-cutting measures, including lobbying the Government for a reduction in licence fee payments. Should the broadcaster’s appeals be successful, a saving of around £100 million could be made each year. The company currently pays around £200 million in licence fees, but contributes another £250 million through the public service broadcasting quotas included in the franchise terms of its licences (see ITV Could Receive Boost From 40% Cut In Licence Fees).
However, the company recently experienced a boost to its advertising revenue with the Euro 2004 football tournament helping it to see its strongest growth since the height of the dotcom boom in 2000. The event boosted revenue by 17% as an overwhelming demand for airtime spots helped the broadcaster to outperform all of its commercial rivals put together (see ITV Hails Euro 2004 A Success As Revenue Soars).
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