Strong start fades as ITV suffers World Cup hangover
Thursday 12 May 2011
ITV warned that its advertising revenues are set to fall a year on from the football World Cup yesterday, but said that further progress had been made with its five-year overhaul plan.
The broadcaster reported an 11 per cent rise in revenues from £450m in the first quarter of 2010 to £500m a year on.
Adam Crozier, ITV's chief executive, backed the positive start to the year in which the group outperformed the TV advertising market, with revenues up 12 per cent. Yet, he cautioned: "We expected that the ad market in the second quarter would be difficult given the very tough comparators and the continued economic uncertainty."
He added: "As we anticipated, tough ITV1 World Cup comparators in June mean we may slightly underperform the market in the first half."
Numis' analyst Paul Richards said: "The first quarter got off to a great start but it has faded somewhat since." He added the outlook for the year was good because of another World Cup, this time rugby, which will be shown on ITV in the autumn. The emergence of new revenue streams such as product placement and online streaming "will also be positive", he said.
Mr Crozier said the group had invested in making ITV Player easier to use and introducing it on to a wider range of smartphones and tablets, after criticising ITV's online performance last year. "Investing in new programmes and a greater focus on in-house production are also key to our transformation," he added.
"The continuing volatility in the TV advertising market underlines the need for us to keep firmly focused on our five-year transformation plan," Mr Crozier said, adding that the overhaul was "making good progress". Shares in the broadcaster fell 5 per cent to 71.9p.
Channel 4 also reported yesterday. It posted a full-year revenues rise of 12.6 per cent to £935m in 2010 with operating profits up from £3.9m in 2009 to £49.3m. The broadcaster also slashed losses at its flagship channel by 87 per cent to £7.7m. David Abraham, C4's chief executive, said: "2010 was a year of transition and Channel 4 has entered 2011 ready for the future."
Liam Neeson's Downton dreams
- 1 Mario Balotelli: Staff at arson-hit Manchester Dogs' Home convinced Liverpool striker is behind five-figure donation
- 2 Scottish independence live: Scotland gives a clear 'No' in historic referendum - as it happened
- 3 iOS 8 is full of shiny new features - but it's terrible news for app developers
- 4 Friends 20th anniversary: Six things we wouldn't have without influential comedy series
- 5 Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
Scottish independence referendum results: David Cameron pledges plans for 'English votes for English laws' by January
Scottish independence live: Scotland gives a clear 'No' in historic referendum - as it happened
Scottish referendum results: David Cameron set to unveil major devolution of powers to England
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
Portuguese academic says British are 'filthy, violent and drunk'
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...