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ITV PLC (ITV)

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Tuesday 19 December, 2006

ITV PLC

Trading update

ITV PLC
19 December 2006




                                                          19 December 2006

ITV plc - trading update for the twelve months ended 31 December 2006


Key highlights


  • Michael Grade appointed Executive Chairman, effective 8 Jan 2007

  • Forecast data for full year 2006 versus full year 2005

      o 2006 trading in line with current expectations
      o Total revenues on continuing activities in line with 2005*
      o Net Advertising Revenue

        o       NAR for ITV1 down approximately 12.5%

        o       NAR for GMTV down approximately 3%

        o       NAR for ITV digital channels up approximately 40%

  • Adult Share of Commercial Impacts (SOCI) year to date#
      o ITV1 down 10.4% at 33.3%
      o GMTV down 4% at 2.5%
      • ITV digital channels up 37% at 6.6%
  • 2007 programme investment in line with 2006
  • Operational efficiency savings currently on target to deliver £40m by 2008



Net advertising revenue


Whilst ITV1 NAR was approximately 12.5% down in 2006, this is better than the
expected outcome under the Contract Rights Renewal (CRR) mechanism, partly
reflecting strong growth from regional television advertising which ITV is best
placed to provide.  Sponsorship, interactive and on-line revenues are also up
year on year.


Schedule performance


ITV1 remains the UK's most popular channel in peak time with an average peak
time share so far this year for adults of 27.3%, compared to BBC1's 24.5%,
BBC2's 9.3%, C4's 8.8% and Five's 5.6%.  Since the Autumn Schedule began our
peak time share has been 29.0%.  The all time adult viewing share for ITV1 and
GMTV combined has been 20.4% for the year to date.


Our digital channels continue to show good growth with the aggregate all time
share of adult viewing in multichannel homes for the year to date up 17.8% at
4.3%.  ITV2, 3 and 4 are all now in the top 7 digital commercial channels by
adult viewing share and we have exceeded our revenue target (of £150m of NAR
from these channels by 2007) a full year ahead of expectations.


Programme Investment



In 2007 ITV plc is budgeting programme investment being maintained at
approximately £1 billion.   This includes ITV1 total network budget of £815m
(less a contribution from ITV minorities of approximately £55m), ITV1 regional
spend of c£120m and GMTV programming of c£30m plus ITV channels investment of
c£100m. Maintaining the programming investment on ITV1 will deliver new and
improved programming to our customers, contributing to schedule performance, and
to SOCI.  Under the CRR mechanism movements in SOCI proportionately affect
ITV1's share of total TV advertising revenue in the following years.


The investment in programming for our digital channels in 2007 is funding an
increase in the number of original commissions and acquisitions, enabling
continued growth in viewing share.


Consumer


We expect the full year 2006 turnover from our Consumer operations to be at
least twice that achieved in the first half, with Friends Reunited continuing to
meet its business plan.  Our entertainment portal, www.itv.com, launches in the
Spring and we are developing ITV Local broadband television, www.itvlocal.tv,
adding London and Central regions to the current Meridian region trial.


Production


ITV Productions has had a successful year with 8 out of the top 10 shows on ITV1
made by ITV Productions. Production revenue outside ITV1 is growing strongly
both in the UK and internationally.  We have also seen good growth in our
international secondary programme sales and in ancillary revenues.


John Cresswell, interim Chief Executive, said:


'2006 trading remains in line with current market expectations and, whilst the
airtime sales environment remains challenging, our digital channels continue to
perform strongly.  I am delighted to welcome Michael Grade as Executive Chairman
of ITV and we look forward to working with him in the New Year.'

For further enquiries please contact:

ITV plc
Tel: 020 7843 8000
Press enquiries
Brigitte Trafford - Communications Director
Jim Godfrey - Head of Corporate Affairs



Investor enquiries
James Tibbitts - Company Secretary
Georgina Blackburn - Head of Investor Relations
Caroline Bailey - Investor Relations Analyst



Citigate Dewe Rogerson
Tel: 020 7638 9571
Jonathan Clare
George Cazenove
Nicola Smith

Website: www.itv.com; investor information: www.itvplc.com

* Revenue from discontinued businesses £37m in 2005

# 2 January 2006 to 9 December 2006



Editor's note: Following the acquisition of a 17.9% shareholding in ITV plc by
BSkyB there are two separate regulatory processes currently being conducted by
Ofcom and the OFT under the Communications Act and Enterprise Act respectively
and the outcome of those processes will be announced in due course.




                      This information is provided by RNS
            The company news service from the London Stock Exchange