ITV optimistic despite sales drop
REVENUE at broadcaster ITV has dropped by 11% but the group has been buoyed by stabilising advertising markets.
During the nine months to September 30 sales at ITV dropped 11% to £1.3bn. Income fell by 12% at its broadcasting division but its online arm increased turnover by 8% while its ITV Studios business, which makes programmes for other broadcasters, grew sales by 11%.
The group said it expected ad revenues to remain flat in the fourth quarter but it continued to outperform the market which is stabilising after a tough period as companies cut back on advertising and rates fell.
ITV, which owns Granada in Manchester where it employs around 1,000 people, said ITV1 was extending a lead in peak time viewing over BBC1, helped by programmes such as The X Factor.
John Cresswell, ITV’s chief operating officer, said: “ITV is continuing to deliver a strong operational performance in challenging market conditions. All our channels are performing strongly on-screen and ITV1 is extending its lead over BBC1 in peak time viewing. Both ITV Studios and itv.com are delivering revenue growth. We are meeting our cost savings targets and continue to strengthen
our balance sheet.
“Whilst our visibility is limited, the outlook for the fourth quarter has continued to improve and ITV is continuing to outperform the market. With further cost savings and a strong schedule in 2010, including the World Cup, we are confident that ITV is well-positioned to benefit from any market recovery.”
Earlier this year the group announced 600 job cuts and plans to save £285m by 2011. It said today it was set to deliver cost savings of £155m in 2009 and has strengthened its balance sheet by repaying £75m of its existing £125m loan following its £135m convertible-bond issue last month.
