ITV Sees Premium Rate Revenues Fall

ITV’s revenues from premium rate services were down by £58 million in 2007, following the phone-in scandals that rocked television.

In its full year statement released today, ITV said that its total revenues in 2007 were £2.08 billion, a year on year fall of 5%.

The broadcaster’s profits were £188 million, down 35% on £288 million recorded in 2006.

Its revenues from premium rate services were hit by several incidents last year where viewers ended up being misled when calling in to ITV shows (see That Was The Year That Was – 2007 In Review).

Although online revenues were £33 million, up 44% from 2006, the cost of relaunching ITV.com and rolling out ITVLocal.com saw the division lose £12 million before interest, tax and amortisation.

Recent figures showed that ITV’s simulcast and catch-up TV service had a peak of around two million views of full length TV shows and clips in January, down by 200,000 views from its peak in November (see iPlayer Outperforming ITV.com).

Net advertising revenue was £1.49 billion, while revenues from the company’s digital channels rose by 33% to £209 million.

Ad revenues are estimated to be up 1.9% for the first quarter of 2008.

ITV executive chairman, Michael Grade, said: “We are heartened by the positive response of advertisers to the improved on-screen performance and our investment in channels and online. Having stabilised our advertising revenues last year, we’ve been able to increase ITV television advertising revenues nearly 2% year on year for the first quarter of 2008, running well ahead of the total market.

“We have made real progress towards delivering on our 3-5 year growth strategy. We’ve reached agreements to launch Freesat, Kangaroo and an HD ITV service this year.

“We’ve taken a stake in Mammoth Screen, a controlling position in Jaffe Braunstein Entertainment and acquired 12 Yard. We’ve re-launched itv.com, completed the roll out of itvlocal.com and continued to grow Friends Reunited.”

Last week, ITV announced that it was hiring former BBC One controller Peter Fincham to take over from Simon Shaps as director of television (see Fincham To Replace Shaps At ITV).

It also revealed Michael Grade has agreed to stay in post as executive chairman until the end of 2010, one year longer than his original three-year term.

ITV: 020 7843 8000 www.itv.com