Granada Reports 6% Rise In Ad Revenue For 1998

Following the Granada Group AGM yesterday, the media owner’s chairman, Gerry Robinson, released a positive trading statement showing that advertising revenue had risen by 6% in the first quarter to December 1998. ITV, of which Granada is one of the franchises, almost achieved its target peak time viewing share of a 38% set by Richard Eyre at the beginning of last year (see Newsline); the final figure for the year came in at 37.8%.

The broadcaster received permission from the ITC to axe its News At Ten bulletin last year, after it was revealed that such a move was vital in order for the network to achieve its target audience figure (see Newsline). Granada, and the rest of the ITV group, are currently facing the possibility of industrial action however, after industry union members rejected its 3.6% pay rise offer as not being high enough (see Newsline).

Granada also confirmed the success of the launch of its digital service, ONdigital (see Newsline), and stressed that it is improving its coverage with the addition of more transmitters.

The group is also expecting to create 2,500 new jobs this year in its roadside catering and Travelodge business. Robinson commented: “Throughout 1998 we continued to build the brands in our growing media and hospitality business, and increased our earnings by 13% on the previous year. 1999 has seen the strongest start to a new year for many years, both in ITV’s audience share and in our advertising revenues which will grow even faster in our second quarter”.

Shares in Granada rose by 55p to close at 1151˝p following this statement (see Sharewatch).

Granada: 0171 451 3000