ITV releases trading statement

In a trading statement released today, broadcaster ITV said its advertising revenues were down approximately 12.5% in 2006.

ITV1's share of commercial impacts dropped 10.4% to 33.3% during 2006, but had improved in the latter half of the year with a stronger autumn schedule, lifting ITV1's audience share to an average of 29%, compared to a year-to-date figure of 27.3%.

The broadcaster said this was better than expected outcome under the new contract rights renewal mechanism, partly reflecting strong growth from regional television advertising. Sponsorship, interactive and on-line revenues are also up year on year.

The group's digital channels saw net ad revenues rise by around 40% throughout the year, with ITV2, 3 and 4 exceeding combined ad revenue targets of £150 million a year ahead of expectations.

John Cresswell, interim chief executive, said: “2006 trading remains in line with current market expectations and, whilst the airtime sales environment remains challenging, our digital channels continue to perform strongly. I am delighted to welcome Michael Grade as executive chairman of ITV and we look forward to working with him in the New Year.”

ITV's programme investment will be maintained at approximately £1 billion, which the broadcaster says will help to "deliver new and improved programming to our customers."

The broadcaster anticipates that its consumer ventures, which include Friends Reunited, will continue to satisfy its business plan.

A launch of an entertainment portal, www.itv.com is planned for the Spring, and ITV Local broadband television will expand to include London and Central regions in addition to the current Meridian regional trial.