The Granada Group today announced a 10% increase in media sales in the six months to 31 March. Net advertising revenue is estimated to have grown by 11%, which it claimed is well ahead of ITV averages for the period.
The media and hospitality group announced the increases in a trading update ahead of going into its close season before the announcement of its interim results in mid-June. Media sales for the three months ending March 2000 are expected to be up by more than 12% in a year-on-year analysis; this compares to the three months to December, where growth was 9%.
The strong trends are continuing with estimates for April expected to be 20%; those for ITV are predicted to be 17%. The increases have been helped by the influx of dotcom advertising, which soared from £5 million in the quarter to December to over £8 million in the quarter to the end of March. Industry expectations put total dotcom advertising at over £200 million this year.
Chairman Gerry Robinson said: “We have continued to make excellent progress in developing our overall strategies for the business over the last six months.”
Sponsorship was also ahead by over 30% for the period, pushed by new deals with Proctor & Gamble for Emmerdale, sponsorship around the Rugby World Cup, and the renewal of Cadbury’s deal with Coronation Street.
Programme sales also increased by 13% in the first half and look set to be stronger in the second half, with over 20% growth expected, fuelled by a boom in both UK and international sales.
Granada said that its share of ONdigital, the digital terrestrial platform it joint-owns with Carlton Communications, has taken £82 million over the six-month period, and now has 552,000 subscribers. Last week saw the launch of TV e-mail service, ONmail, and its interactive TV service is expected later this year. A pay-per-view service, ONrequest, is planned to launch in May.
Shares in the group were 8p higher at 640˝p this morning.
Granada Group: 020 7620 1620
