ITV adjusts targets as profits plummet by 28%

Michael%20GradeITV has been forced to “reassess” the targets of its turnaround strategy as it reports a 28% dip in year-on-year pre-tax profit to £91m for the first half of 2008. It comes as the broadcaster predicts that ad revenue for September will plummet by 20%.

The broadcaster saw a 3% increase in group revenue to £1.03bn for the six months to June 30, but it says that ad revenue for the first eight months of the year has been flat. Its share of commercial impacts across the ITV Family was flat at 41.4%, although share was down by 5.1% at flagship channel ITV1.

ITV says that as a result of the tougher economic climate it is planning to make £35m in cost savings by the end of 2010. It has also adjusted its target for its global content division, which sells its programme formats and franchises globally, from £1.2bn to £1bn by 2012, and has moved back its online revenue target of £150m, by 2010 also to 2012. The latter has been affected by regulatory delays to the planned catch-up programming service, Kangaroo.

Michael Grade, ITV executive chairman, says: “We cannot control the economic environment in which we operate. As a result of the recent slowdown in the television advertising market, the board has taken some tough decisions which are reported here today.”

He adds that despite a tough September, which included the Rugby World Cup last year, ITV expects to outperform the total ad market over the full year.

Revenue in its online division, which includes Friends Reunited, grew by 6% per the period, with an average of 6 million unique users per month.

Latest from Marketing Week


Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now


Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.


From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.


Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email

If you are looking for our Jobs site, please click here