Q1 Revenues at ITV Down 14 Percent

LONDON: ITV has said it plans to make an additional £40 million in cost savings from next year, after announcing that group revenues fell 13.6 percent to £425 million in the first quarter.

Broadcasting revenues fell 12 percent to £359 million, with net ad revenues down 15 percent, while Global Content revenues decreased by 3 percent to £56 million. Online revenues were flat at £9 million.

The company said it was "making good progress" towards its £155 million cost savings for 2009. It has committed to an additional £40 million in saving from 2010. As a result, total cost savings will rise to £215 million in 2010 and £285 million in 2011.

“The television advertising market remains weak," said executive chairman Michael Grade. "However ITV continues to outperform the market, reflecting the continued strength of our on-screen performance, particularly in peak time. In addition, we are holding our content revenues in tough domestic and international markets and we are attracting record users online. In March we gave details of ITV’s plans for responding to the difficult market conditions we face. We are making good progress in implementing these plans, although we currently expect the phasing of profits across the year to reflect the weighting of cost savings to the second half. We have since confirmed our intention to dispose of SDN and agreed new financing arrangements, together with additional savings. The Board has also set in motion the process for management succession. We continue to press for rapid regulatory progress and are encouraged by the growing support for public funding to sustain regional news, ahead of the publication of the final Digital Britain report next month. The Board continues to take the steps necessary to steer the Company through these challenging times."