Ad recovery benefits cautious ITV

A RECOVERY in television advertising has pushed up revenues at ITV by 11%.

But the business remains cautious, anticipating advertising revenue growth to slow next quarter and admitting the outlook for 2011 is uncertain.

In the interim management statement there was no mention of the group’s expected move of its operation in Quay Street Manchester to MediaCity at Salford Quays.

In the nine months to September 30 group revenues rose 11% to £1.4bn. Television ad revenue rose 16% in the third quarter but is expected to be up 10% in the fourth quarter.

The audience share of commercial television fell 1% to 39.3% in the year to November 6 despite hit shows such as The X Factor and Coronation Street. ITV1’s share fell 5% to 26.8%.

Chief executive Adam Crozier said: “The television advertising market has continued to recover strongly. However this does not disguise the significant challenges ITV faces and we remain focused on delivering the five-year Transformation Plan.

He said the group was rolling out high definition versions of ITV2, ITV3 and ITV4 on the Sky platform and it has agreed a new three-year deal for both The X Factor and Britain’s Got Talent.

But he added: “The economic outlook for 2011 is uncertain and we continue to plan on a cautious basis.”