The breakfast show, presented by Adrian Chiles and Christine Bleakley, began last September - replacing the axed GMTV.
The Guardian reports that viewing figures show the programme has attracted an average audience of 800,000 (18.5%), which is around 100,000 viewers less than GMTV in the same period the previous year.
Presenting its financial results for 2010, the broadcaster stated that "certain slots in the schedule have been disappointing", adding: "Daybreak has not performed as we would have hoped."
However, the programme has recently bounced back from lows of just half a million viewers in October to double that audience in the final hour of the show.
"Clearly it has had a difficult introduction but the numbers have now settled down," ITV chief executive Adam Crozier said. "It is bringing in a younger audience and the programme has got a lot better over the last few months. The key thing is to keep investing."
An ITV spokeswoman added: "Since Christmas 2010, Daybreak figures have again been growing steadily, with to date an average of 0.8m (19%). In terms of profile, Daybreak is reaching a more upmarket and younger female audience year-on-year. [Between] 14 and 18 February [it was] up 2% on ABC1 viewers compared to the same week with GMTV last year."
> Chiles: 'Daybreak launch was too big'