Advertising resurgence boosts ITV profits

BROADCASTING group ITV posted a 42% increase in half-year profits yesterday after seeing advertising revenues jump to the best level since the dotcom boom.

The British group formed from the merger of Granada and Carlton earlier this year said first-half advertising revenues from all ITV channels had improved by 4.9% on 2003 and were estimated to be up 5.5% in the current quarter.

Chief executive Charles Allen said the newly-created company had delivered on all aspects of the merger, with cost savings achieved six months early.

He pledged to raise the savings target to £120 million (€176 million) a year but did not provide details of how the extra savings would be achieved.

In yesterday's figures, covering the six months to June 30, ITV said operating profits rose 32% on a year earlier to £123 million (€180 million) while bottom-line pre-tax profits came in at £132 million (€193 million). The figures are on a pro-forma basis.

The company added that it had a strong autumn schedule in place, with stars including Martin Clunes and Ray Winstone.

It will also launch ITV3, a new digital station to cater for the over-35 age group, on November 1.

The tie-up between Carlton and Granada brought together all the former ITV regional companies, except Scottish, Grampian and Ulster. As a result, ITV plc's share of advertising revenues rose by 4% in the first half and in the quarter to the end of September is set to have risen by 5.2% on the same period a year earlier.