ITV has announced a 28% year on year fall in pre-tax profits for the first six months of the year, to £91 million.
The commercial broadcaster also reported a 3% increase in revenues to £1.03 billion.
The company said that net advertising revenues dipped an estimated 1% in the first eight months but are likely to fall 20% in September.
The total UK TV ad market is expected to be down 17% for September.
ITV said in a statement: “On current estimates, the television advertising market has weakened in September, where tough year-on-year comparisons apply, given the Rugby World Cup in 2007. ITV estimates that ITV NAR for September will be down 20% with the total market down 17%.
“Whilst ITV has limited visibility on advertising revenues beyond September, ITV expects to outperform the total market over the full year.”
ITV is looking to increase its global annual revenues through organic growth and acquisition to a run-rate of £1 billion by the end of 2012.
The broadcaster has also set a new target of £35 million of cost savings by the end of 2010.
Online revenues, from sites including ITV.com and Friends Reunited, were up 6% year-on-year in the first six months.
Michael Grade, executive chairman of ITV, said: “As a result of the recent slowdown in the television advertising market, the Board has taken some tough decisions which are reported here today.
“We are implementing a new cost efficiency plan which will deliver £35 million in additional annual savings by the end of 2010. We are taking a £1,600 million impairment charge on broadcasting goodwill and we are adjusting the turnaround targets for global content and online. We continue to work with regulators, making the case for an urgent reduction in ITV’s regulatory burden.
“ITV’s long-term goal remains to create greater value for shareholders in the digital world from our position as the UK’s favourite source of free entertainment.”
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