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ITV predicts advertising slowdown ITV predicts advertising slowdown
(10 minutes later)
Broadcaster ITV says its advertising revenues will by flat over the first eight months of the year. Broadcaster ITV says profits fell 28% in the first half of the year, and that its advertising revenues will be flat across the first eight months of 2008.
It also predicts its ad revenues will fall 20% in September against 2007, when it broadcast the Rugby World Cup.It also predicts its ad revenues will fall 20% in September against 2007, when it broadcast the Rugby World Cup.
Group revenue for the first half of the year rose by 3% to £1.031bn, but the group made a net loss of £1.54bn. Adjusted pre-tax profit was £91m for the six-month period, but the group made a net loss of £1.54bn.
That was largely due to a charge of £1.6bn, made after it wrote down the value of assets bought in 2000 and 2004 as it created ITV plc. That was largely due to a charge of £1.6bn, made as it wrote down the value of assets bought in 2000 and 2004.
The accounting hit related to goodwill it had booked through purchases it made towards the creation of ITV plc.
'Dire predictions'
The broadcaster, struggling with severe advertising budget cuts in the UK, has targeted an extra £35m of cost savings by the end of 2010.The broadcaster, struggling with severe advertising budget cuts in the UK, has targeted an extra £35m of cost savings by the end of 2010.
The group's adjusted pre-tax profits came in at £91m for the six- month period, compared with £127m a year ago.
Executive chairman Michael Grade said ITV was "not immune to wider economic pressures".Executive chairman Michael Grade said ITV was "not immune to wider economic pressures".
He added: "Despite some dire predictions UK television advertising held up relatively well over the first half of the year and through the summer.
"ITV estimates that total net advertising revenue for the eight months to August will be down 1% year-on-year, with ITV plc net advertising revenue flat.
"However on current estimates the television advertising market has weakened significantly in September, where trading is impacted by tough comparisons with the successful Rugby World Cup in 2007."
ITV's sports costs were up £29m compared to last year, primarily due to the cost of broadcasting Euro 2008 football matches.ITV's sports costs were up £29m compared to last year, primarily due to the cost of broadcasting Euro 2008 football matches.
However sport was one of the areas where ITV continued to perform well, with the UEFA Champions League final between Manchester United and Chelsea achieving an audience of 10 million viewers.However sport was one of the areas where ITV continued to perform well, with the UEFA Champions League final between Manchester United and Chelsea achieving an audience of 10 million viewers.
ITV's net advertising was actually up 1% over the first six months of the year, and its viewing share up 2.5%.