ITV Revenues Down 12% In H1, Visibility Still Limited

ITV Revenues Down 12% In H1, Visibility Still Limited

ITV advertising revenues at Granada fell by 12% during the six months to March 2002, with March forecast to be down by 6% and April by 13%, according the company’s AGM statement released this morning.

A return to growth, of 9%, is predicted for May, but Granada warns that whilst this is positive, it may reflect both a more generous comparable of last year and the fact that advertisers are investing in advance of the football World Cup in June this year.

Consequently, Granada warns of continued poor visibility and says that the predictions for May should not be extrapolated to the rest of the year.

Granada told its AGM that the cost savings from the formation of a single ITV company – essentially a merger with Carlton – would reach around £50 million a year.

A merger between the companies, whilst certainly not imminent, is widely regarded as an inevitability. However, there are a number of competition law and legislative hurdles that need to be overcome before such a deal can take place.

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