ITV’s Finances Hinge On World Cup Victory

ITV could face a disappointing shortfall in ad revenue this year if England’s World Cup team fail to perform well in Germany, with projections from Media Planning Group claiming the broadcaster could face a dip of between 3% and 5% year on year if the national side perform badly.

MPG calculates the difference between England exiting at the group stage and making it to the final could be as much as £14 million in revenue for ITV.

Using data from the last two major international football tournaments, Euro 2004 and the 2002 World Cup, MPG’s research reveals a severe dip in TV ratings following England’s exit from the running.

In Euro 2004, UK audience figures collapsed by 71% per cent for the game following England’s defeat and elimination by Portugal in the quarter finals. In the last World Cup this drop was even larger, at 79% following England’s quarter-final defeat by Brazil.

Jim McDonald, head of broadcast at MPG, explained the situation could even be worse, stating: “Our £14 million figure is a conservative estimate – the difference in revenues for ITV, between an England success and England failure, could be even more than that.

“The potential upside, however, is that if England stay in and audiences are buoyant, advertisers who have invested in the World Cup will enjoy record low prices for the world’s biggest sporting event.

“Our research shows that all is not lost for ITV just yet, but they need to start praying – along with everyone else – that Rooney’s foot heals in time for the final rounds of the World Cup and improves England’s chances”

ITV: 020 7843 8000 www.itv.com MPG: 0207 393 9000 www.mpg.com