Reports Predict Continued Gloom From Granada Results

Shares in the broadcasting sector took a slump yesterday as reports claimed that Granada’s financial results, due tomorrow, will show deepening woes for ITV’s advertising revenues.

The Financial Times says that ITV ad revenue is likely to be down almost 25% in July; in April revenues were down by 18.9%, according to buyers’ estimates collected by MediaTel.

Analysts had been expecting a decline of around 15% during July, working on the basis that a recovery of sorts was beginning to emerge. If, however, Granada’s results confirm the fall, it is likely to impact the rest of the broadcasting and media sector.

Carlton Communications, the other key ITV company, recently warned that there is no end in sight for the advertising downturn. It is feared that Granada will confirm this is still the case on Wednesday and is likely to talk about cost-cutting in the face of falling, even negative, profits.

By the end of yesterday’s trading, shares in Granada had fallen 5¼p to £1.70¾, down nearly 3% on Friday’s closing price.

Granada: 020 7620 1620 www.granada.co.uk

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