ITV Profit Down

LONDON, March 5: ITV’s
profit before tax for 2007 fell 35 percent to £188 million, while revenues were
down 5 percent to £2.1 billion, but the commercial broadcaster was able to
stabilize its ad revenues for the year.

Total revenues were
impacted by a £58 million fall in premium-rate-services income, while global
content revenues were down by £37 million. Net ad revenues, however, were flat
at £1.5 billion, including £209 million on the ITV digital channels.

Michael Grade, ITV’s
executive chairman, noted: “In
my first year back at ITV, we put together a growth strategy for the business
and strengthened the senior team. The first priority for ITV was to stem the
decline. We did more than that, delivering an increase in viewing to the ITV
family for the first time in over a decade. For the first time in many years,
ITV1 outperformed its competitors and we’ve continued to do so into 2008.

“We are heartened by the
positive response of advertisers to the improved on-screen performance and our
investment in channels and online. Having stabilized our advertising revenues
last year, we’ve been able to increase ITV television advertising revenues
nearly 2 percent year on year for the first quarter of 2008, running well ahead
of the total market.”

Grade continued: “We have
made real progress towards delivering on our 3-5 year growth strategy. We’ve
reached agreements to launch Freesat, Kangaroo and an HD ITV service this year.
We’ve taken a stake in Mammoth Screen, a controlling position in Jaffe
Braunstein Entertainment and acquired 12 Yard. We’ve re-launched itv.com,
completed the roll out of itvlocal.com and continued to grow Friends Reunited.

“The Board’s decision to
recommend holding the dividend reflects their confidence in the strategy for
growth and the team we have in place to deliver it. The Turnaround Plan is on
track.”

—By Mansha Daswani