ITV merger on track to achieve 2005 cost cuts

British broadcaster ITV, formed this year by the merger of rivals Carlton and Granada, says it is on track to achieve £100m (€150.79m) of cost cuts identified by the end of 2005.

The group also said that its integration was progressing well with the appointment of 150 managers and that the advertising market is more stable, despite limited visibility.

The company owns 12 of the Britain's Independent Television 1 (ITV1, a national broadcast network) stations, as well as sister digital channel ITV2 and stakes in pay-TV channels and internet ventures.

It said that its earnings before interest, taxes and amortisation for the 12 months to December 31 would have been £222m (€334.76m) if the company had it been combined during that period.

This was in line with analyst expectations.

ITV, who control more than half of the British TV advertising market, said its advertising revenue was down 2% in 2003 due to a lower viewing share, but expects advertising revenue to increase by £4m (€6.03m) in the three months to March 31.

Granada's pre-tax profit for the 15 months to December 31 was £223m, (€336.28m) on turnover of £1.75bn (€263.89bn).

Carlton's 15-month pre-tax profit was £96m (€144.76m), on turnover of £1.19bn (€1.79bn).

Charles Allen, ITV Chief executive said: "ITV has come an enormously long way in the last 15 months and the pace of change has been incredible."