ITV has announced that ITV1’s net advertising revenue (NAR) was £1.2 million in 2006, down from £1.4 million in 2005.
In a financial statement released today, ITV said that its 2006 share of total ITV1 net advertising revenues (NAR) represented 59% of the company’s total revenues before disposed businesses (2005 68%).
The broadcaster added that the principal factors resulting in the reduction in ITV1 NAR in 2006 were a 5% fall in the TV advertising market and the effect of the contract rights renewal mechanism (CRR).
ITV Worldwide production businesses increased their worldwide turnover by 16% in 2006.
The company added that in Spring 2007, it will re-launch the new itv.com, having earmarked over £20 million to the development of a fully interactive broadband platform and content digitisation.
Looking forward to the rest of the year, ITV said: “In a world of fragmented viewing, the channels that are able to offer a shared viewing experience for viewers and a mass audience to advertisers become ever more valuable.
“ITV1 remains the most-watched channel in peak-time and is still the most effective way for advertisers to build awareness and brands in a short space of time.
“We also believe that ITV’s regional presence, an intrinsic part of the company’s history and identity, will increasingly be a point of difference and a competitive advantage as other commercial players will be unable to match our ‘local’ connection with viewers or our regional advertising opportunities.”
ITV also made forecasts for net advertising revenue in the first quarter of 2007, estimating that ITV1 would be down 9.2% at £291.8 million (reflecting the CRR effect), ITV Plc (excluding ITV1) would be up at 28.2% at £58.8 million and total ITV Plc would be down 4.5% at £350.6 million.
The secretary of state for trade and industry, Alastair Darling, recently asked Ofcom to review BSkyB’s acquisition of a 17.9% stake in ITV (see Darling Orders Investigation Of Sky/ITV Deal).
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