ITV issues cautious outlook

ITV expects growth in net advertising revenues to slow to 10 per cent in the current quarter from 16 per cent in the third.

ITV expects growth in net advertising revenues to slow to 10 per cent in the current quarter from 16 per cent in the third.

The broadcaster said it was cautious about the outlook for next year.

Britain's biggest commercial free-to-air network said today that total sales rose 11 per cent to £1.46 billion in the first nine months of the year, driven by a strong advertising recovery from a low 2009 base.

Its audience share of commercial impacts, which excludes the state-owned BBC, fell 1 per cent to 39.3 per cent in the year to November 6th despite hit shows including X Factor and Coronation Street.

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ITV1's share of commercial impacts fell 5 per cent to 26.8 per cent.

"The television advertising market has continued to recover strongly. However, this does not disguise the significant challenges ITV faces," chief executive Adam Crozier said. "The economic outlook for 2011 is uncertain and we continue to plan on a cautious basis.”

Under Mr Crozier, who joined ITV at the end of April, the broadcaster plans to enter the pay-TV market as part of a scheme to generate around half its revenue from more reliable sources than advertising.

ITV made no mention of any reinstatement of a dividend in the new year, something weekend reports suggest would consider.

Reuters