ITV reports fall but is optimistic

Commercial Broadcaster ITV has announced a 17% fall in 2007 earnings due to digital investment and a dispute over premium-rate phone-ins.

However, the broadcaster said advertising revenues were showing signs of improvement.

Shares in the company opened up 2.6% at 68.2 pence this morning.

The company said net advertising revenues (NAR) for 2007 had held steady at £1.49 billion, with growth on the digital channels offsetting a 4% NAR drop on the main ITV1 channel.

Total viewing of its channels last year rose year-on-year for the first time since the early 1990s, and viewing figures were up so far in 2008, with a market share of 23%, while its share of commercial TV was held at 41.5%.

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 almost 2% year-on-year for the first quarter of 2008, running well ahead of the total market, added Mr Grade.

Viewers that had deserted us are coming back. You are not going to get a 10% or 20% increase in viewing numbers. Given that we had 10 or 15 years of declining share I will take this increase, continued Mr Grade.

Mr Grade said the show Britain’s Got Talent was one of ITV’s successes last year.

ITV is optimistic about the future with the arrival of new television programmes such as Lewis, Wild at Heart, Rock Rivals and The Fixer.

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