X Factor boosts ITV profits

The popularity of The X Factor and Downton Abbey helped profits rise 24% at ITV but the broadcaster warned advertising revenues have dropped in early 2012.

ITV, which is also home to Coronation Street, said profits rose to £398 million in 2011 after it gained market share, driven by the strong performance of its digital channels, although there was a 1% decline at its flagship ITV1.

The group, which is nearly two years into its transformation plan, said there were signs of improvement in its studios business, which increased revenues by 10% and has sold its Titanic drama to 86 countries ahead of its release this year.

But while advertising revenues were up 1% in 2011, outperforming the market, it expects a 2% fall in the first quarter of 2012 as marketing budgets are hit by the economic slowdown.

PA