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| ITV hit by advertising slowdown | |
| (21 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 says advertising 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 allowing for one-off charges it made a £1.54bn loss. | 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. |
| Ad revenue 'holding up' | Ad revenue 'holding up' |
| 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. |
| Multi-channel competition against ITV has been a nightmare for this founder of commercial broadcasting for years Robert Peston, BBC business editor Read Robert's blog in fullCheck ITV's share price | |
| 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. | 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," Mr Grade said. | "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. |
| ITV's sports costs were up £29m compared with last year, primarily due to the cost of broadcasting Euro 2008 football matches. | 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. | 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 | 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. | 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. | "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 weâre all experiencing â manifest in ITVâs expectation that its net TV advertising revenue will be 20% lower in September." | "What makes this nightmare almost unbearable is the economic slowdown weâre all experiencing â manifest in ITVâs 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". | 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". |