Carlton Communications chairman Michael Green, today told the company’s AGM that the advertising market remains weak and that he is unable to predict with any uncertainty the timing of a resumption in growth.
Nevertheless, Green reassured that Carlton is well-positioned to benefit from a recovery in demand for advertising, when it does transpire.
ITV revenues remain down ITV’s ad revenue in the first five months of the company’s current financial year (October to February) is expected to be around 12% down year on year.
However, the World Cup in June is expected to revitalise interest from many of the bigger advertisers. “When business confidence returns, new product launches will favour ITV1, which provides advertisers with unrivalled impact,” said Green.
ITV2 builds interest Green also said that ITV2, ITV1’s digital sister channel, is attracting new audiences and advertiser interest. Since its launch on digital satellite last November (see ITV Finally Agrees Satellite Carriage Terms With BSkyB), its audience share has quadrupled, he told the AGM.
Merger discussion with Granada discontinued Discussions with Granada, the other major ITV player, about a possible merger of the two companies were terminated yesterday (see Carlton And Granada End Merger Talks). Green says that Carlton’s objective is to work with its ITV partners in order to make the Network ‘stronger and more competitive’.
It is widely accepted that a merger between Carlton and Granada will take place eventually, leading, ultimately, to the creation of a single ITV company.
Outlook Commenting on Carlton’s and ITV’s plans for the coming year, Green said: “In the year ahead our focus will be on three key areas: strengthening ITV1’s schedule performance, continuing to reduce the costs in our businesses, and shaping the future of both free and pay television.”
Shares in Carlton were down 4½p at 216½p by mid-morning.
