ITV has stabilised its ad revenue, according to a trading update released today for the 12 months to December 31.
The broadcaster said that its net advertising revenue was down 0.6% across all of its channels, compared with an 8.4% fall last year, while ITV1’s ad income dropped 4.4%, an improvement on the 12.4% decline in 2006.
It estimated that the total UK TV advertising market was up over 6% across the second half of 2007 and over the full year has grown by around 3%.
It added that its digital channels, ITV2, ITV3 and ITV4, enjoyed an increase in ad revenues of 32%, to £209 million.
Michael Grade, ITV executive chairman, said: “ITV plc has made measurable progress during the course of 2007. On-screen ITV1’s performance has been much improved; we have assembled a formidable senior management team; and we’ve seen real growth in the whole television advertising market over the second half of the year.
“ITV is finishing 2007 strongly. ITV1 NAR in November was 2% up year on year and, with late money still entering the market, estimates for December continue to improve. Over the second half of 2007 we expect ITV1 NAR to be flat year on year, with NAR across all ITV’s channels up 3.5%, and we can see no evidence of advertiser demand weakening.
“Our focus for 2008 is on implementing the turnaround plan set out in September and maintaining the positive momentum in ITV1’s viewing performance.”
Last week, ITV announced the acquisition of 12 Yard Productions, for an initial cash consideration of £26 million.
A further payment of up to £9 million may be made in 2011, part of which is contingent on profit performance over a three-year period (see ITV Acquires Production Company 12 Yard).
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