ITV Revenues Predicted To Be 12% Down In Five Months To February
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’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.
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, its audience share has quadrupled, he told the AGM.
Discussions with Granada, the other major ITV player, about a possible merger of the two companies were terminated yesterday. 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.
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.”
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