ITV profits down by a third

ITV boss Michael Grade today announced a 35% fall in annual profits following his first full year in charge at the commercial broadcaster.

The group saw pre-tax profits come in at £188m (€245m) for 2007, hit by lower revenues at flagship channel ITV1 and increased investment in digital channels.

But executive chairman Mr Grade remained upbeat about the future, saying the ITV channels as a whole delivered their first viewing increase since the early 1990s.

The decline in advertising revenue at ITV1 also slowed, down 4% last year compared to a 12% drop in 2006.