ITV Profits Up Despite Weak Ad Market

ITV has reported operating profits up 9% to £163 million, boosted by strong performances from businesses outside ITV1.

The broadcaster’s flagship channel continued to struggle in the first half of 2006, reporting an 8% fall in advertising revenue in the first six months of the year to £654 million, while its share of commercial impacts was down in from 37.5% in 2005 to 34.2%.

ITV said that its revenues outside of ITV1’s net advertising revenue were up 25% to £423 million, while consumer revenue was up over 300% to £69 million.

The broadcaster has also set itself a target of achieving 50% of revenues from outside ITV1 net advertising revenue by the end of 2010.

Net advertising revenue for ITV2, 3, 4, CITV and Men and Motors was up 46% to £70 million while digital multichannel viewing increased by 12.3%.

However, due to near term weakness in the advertising market ITV said that it expects its national advertising revenue in the nine months to September to be down by 8%.

ITV announced yesterday that chief executive Charles Allen is to resign, although he will work with interim chief executive John Cresswell during a handover period to last until October 1.

Charles Allen, chief executive of ITV, said: “Despite a tough display advertising market, these results show that our strategy for developing our businesses outside ITV1 is delivering and they continue to grow at an impressive rate. Our focus remains on revitalising the ITV1 schedule performance and the Autumn and Winter schedules are looking strong.

“We also continue to invest in ITV’s digital future with the development of ITV local and broadband in addition to our successful family of channels.”

ITV: 020 7843 8000 www.itv.com