ITV says turnaround plan well on track

ITV Plc, the United Kingdom's biggest free-to-air commercial broadcaster, said yesterday its turnaround plan was on track and it was outperforming a tough television advertising market while increasing audience share.

The company, home to the Coronation Street soap opera and The X Factor talent show, said revenue for the first quarter rose 3 percent on the same period the year before and net advertising revenue (NAR) was up 2 percent.

It forecast NAR would be flat over the first half, ahead of the wider market which is expected to be down 1 percent.

"ITV has made further progress in 2008 and the turnaround plan, outlined in September 2007, remains on track," Executive Chairman Michael Grade said.

"The forecast for the first half shows us outperforming the UK television advertising market - the first time this has happened since 2000."

ITV shares have underperformed the DJ Stoxx European media index by more than a third over the past 12 months amid fears that ad revenue will be hit by an economic downturn.

They have also suffered ahead of an expected large sale of shares after regulators ruled that pay-TV group BSkyB should sell down some of its 17.9 percent stake in the company.

ITV shares closed at 62.9 pence on Wednesday, valuing the business at about 2.6 billion pounds.

Agencies

(China Daily 05/16/2008 page16)