ITV expects ad revenues to fall 16% in the first half of 2009 and plans to make additional cutbacks of £40 million in 2010.
John Cresswell, ITV chief operating officer, said that around half the £40 million savings would come from the programming budget, with the other half coming from “across the rest of the business”.
“Really, we have done better than expected in the savings we announced before, what we have been able to renegotiate in third party contracts, the savings already set out,” he said.
In a trading update released ahead of its annual general meeting today, the company said that overall savings will now be £215 million in 2010 and £285 million in 2011.
Cresswell added that there could be more job cuts to come. “I don’t think you can ever rule them out, but it wouldn’t be anything like the scale of the losses we have previously announced.”
On a positive note, Cresswell said because the downturn set in towards the end of last year, the rate of decline should ease off in the second half of 2009.
ITV saw online activity take off in April, with unique users up almost 80% to 11.1 million and video views increasing by more than 300% to 25.3 million, no doubt helped by the international fame of Britain’s Got Talent contestant Susan Boyle.
