This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7544447.stm

The article has changed 8 times. There is an RSS feed of changes available.

Version 1 Version 2
ITV predicts advertising slowdown ITV predicts advertising slowdown
(30 minutes later)
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.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 says advertising revenues will fall 20% in September against 2007, when it broadcast the Rugby World Cup.
Adjusted pre-tax profit was £91m for the six-month period, but the group made a net loss of £1.54bn. Adjusted pre-tax profit was £91m for the six-month period, but allowing for one-off charges it made a £1.54bn loss.
That was largely due to a charge of £1.6bn, made as it wrote down the value of assets bought in 2000 and 2004. 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. Ad revenue 'holding up'
'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.
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. 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. Multi-channel competition against ITV has been a nightmare for this founder of commercial broadcasting for years Robert Peston, BBC business editor class="" href="http://www.bbc.co.uk/blogs/thereporters/robertpeston/2008/08/the_crumbling_itv_pillar.html">Read Robert's blog in full
"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 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.
ITV's sports costs were up £29m compared to last year, primarily due to the cost of broadcasting Euro 2008 football matches. "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," Mr Grade said.
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 sports costs were up £29m compared with 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.
ITV's net advertising was actually up 1% over the first six months of the year, and its viewing share up 2.5%.ITV's net advertising was actually up 1% over the first six months of the year, and its viewing share up 2.5%.
Tough competition
BBC business editor Robert Peston said cost-cutting was now the order of the day at ITV, as it finds the bill for living up to its obligations as the leading licensed commercial broadcaster financially onerous.
"Multi-channel competition against ITV has been a nightmare for this founder of commercial broadcasting for years," he said.
"What makes this nightmare almost unbearable is the economic slowdown we’re all experiencing – manifest in ITV’s expectation that its net TV advertising revenue will be 20% lower in September."
And our correspondent said that the impairment charge of £1.6bn was "simply the unavoidable recognition that the businesses brought together to create ITV in 2000 and 2004 are worth a great deal less now than they were".