Michael Grade, executive chairman of ITV, said the “turnaround plan” first outlined in September 2007 was “on track” and was positive about net advertising revenue, which grew 2%.
“The forecast for the first half shows us outperforming the UK television advertising market - the first time this has happened since 2000,” said Grade.
Despite the dip in revenues for the broadcasting operation, Grade said that ITV was “maintaining viewing of its family of channels, even as digital penetration grows” - up 1.6% at 23.4%.
Scandi acquisition
Quarterly revenues at ITV's global content division grew 41% from£41m to£58m. The division, headed by Dawn Airey before her recent defection to Five, grew as a result of primetime commissions and format sales to Fox, NBC and CBS in the US.
It also revealed the acquisition of Silverback, a Scandinavian producer, in a deal worth£14m. Click here to read more.
Kangaroo on track
Online, video views across ITV sites leapt 76% since the start of the year to reach 9.9 million in April. Grade said that Project Kangaroo, the video-on-demand service that ITV is developing with the BBC and Channel 4, is “on track to launch later this year”.
The online part of the business, which includes social networking site Friends Reunited, grew by£1m over the quarter to reach£9m. Friends Reunited has now moved to a fully advertiser-funded model.
Grade added that the group is “working closely with regulators to modernise ITV's antiquated regulatory structure” and that reviews of both PSB and airtime sales regulation are “underway”.
“Given the wider economic context, the television advertising market has held up relatively well in the year to date,” said Grade.
“In an uncertain economic environment, ITV continues to deliver advertisers real value and unique effectiveness across ITV1 and its digital channels.”
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