ITV in £120m bonds issue to reduce debt

ITV is planning to raise £120m through a bonds issue in a bid to reduce debt, while also scrapping plans to sell its digital TV business, SDN.

itv ident

The move comes at a time of record declines in advertising revenue and a fall in TV ad rates.

The latest development also comes as the broadcaster announced plans yesterday (12 October) that chief operating officer John Cresswell would step in as interim CEO once a chairman is found to replace executive chairman Michael Grade.

However, Cresswell plans to leave the broadcaster when a permanent CEO is found.

Former Channel 4 chairman Sir Michael Bishop and Sir Crispin Davis, a former Reed Elsevier chief executive, have both taken themselves out of the running for the chairman’s role.

And last month, talks with former BSkyB chief Tony Ball to take on the CEO role broke down.

In a trading update ITV forecasts that ad revenue will fall by 3% in October compared to the same month last year. However, it maintains that it is expecting to outperform its competitors in the second half and the full year.

Meanwhile, ITV says it will not sell Freeview channel operator SDN. Its mooted sale had been raised earlier this year, with estimates that it could have been delivered the broadcaster as much as £200m. SDN makes about £40m a year in revenue.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

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

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

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 will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

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

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

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