ITV advertising revenue continues to slide

British broadcaster ITV today said advertising revenues continued to fall as viewers abandoned its flagship channel in favour of digital platforms.

The UK’s biggest commercial broadcaster, which has recently been the subject of intense bid speculation, said it expected total advertising revenues to slide 4.6% to £750m (€1bn) in the first half of this year.

ITV1, the home of Coronation Street and The X Factor, has been battling to retain its share of the advertising pot as viewers switch from analogue to digital.

Revenues outside ITV1 have been growing. The broadcasters digital channels saw a 42% increase in revenues to £69m (€100m) in the first half, while sponsorship was up 24% to £21m (€30.63m).

However, this was not enough to offset the decline at ITV1.

Chief executive Charles Allen remained upbeat about ITV's prospects and said the company continued to set itself aggressive targets.

The broadcaster has introduced new digital channels and revenue streams, including the addition of website Friends Reunited, in a bid to improve its advertising share.

Total revenues in the first half were expected to be up 2% on last year, ITV said.

ITV said it believes that once the switchover is complete ITV’s overall share of viewers will stabilise.

Advertising share across its digital channels has increased 28% on last year, ITV said.

Across its channels, ITV is now targeting an advertising share of 38.5% by 2012, it said.

Mr Allen said ITV is uniquely well-positioned to benefit as the UK television market continues to fragment.

“We have a renewed focus, a clear strategy and the right management team that will enable us to deliver increasing value to our viewers, advertisers and shareholders,” he said.

The group also announced it would increase its return of cash to shareholders this year, from £300 million to £500m (€729.34m).

Shares were up 1% today, a gain of 1p to 103.5p.