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ITV PLC (ITV)

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Wednesday 04 July, 2007

ITV PLC

Trading Statement

ITV PLC
04 July 2007



ITV plc

Trading update for the six months ended 30 June 2007


H1 summary


•  ITV1 performance begins to stabilise as ratings decline slows and digital 
   multichannel penetration passes 80%


•  ITV adult SOCI*

     o       ITV1 down 5.6% at 32.3% compared to down 9.1% in same period in 2006

     o       ITV family total down 3.1% at 41.5%


•  ITV Adult impact volume*

     o       ITV1 down 2.1%

     o       ITV family up 0.5%


•  ITV total adult all time viewing share*

     o       down 2% in all homes

     o       down 1% in multichannel homes



•  H1 ITV plc NAR down 5%

    o       ITV1 down 9% at £595m

    o       Digital channels and GMTV up 24% at £122m


Net advertising revenue


The UK television advertising market in H1 was approximately 0.3% down compared
to the first half of 2006, whilst July is 10% up on 2006.  Sectors that are
performing well include pharmaceuticals up 11% and telecoms up 7%, whilst
retail, the largest category, was down 4%, ahead of the ITV family average.
Several categories were affected by the phasing of revenue in H1 2006, which
included most of the World Cup spend.  Finance was down 10% and cars and car
dealers were down 12%.  Sponsorship and non-spot advertising revenues are up
year-on-year.


Schedule performance


ITV1 has successfully regained audience share in the afternoon during the first
half of the year.  We are now working on plans to improve the key 9pm slot.  In
the first half ITV screened the hugely successful series Britain's Got Talent
which delivered an average audience of 11.6m for the final and is the best
performing entertainment show on any channel so far this year.  ITV has acquired
TV rights for the Euro 2008 football competition in conjunction with the BBC.
Overall ITV1's adult viewing share in the first half was down by 4.7% on 2006
whilst in multichannel homes alone it was only down by 2.5%.  Within
multichannel homes our digital channels continued to increase viewing share and
overall ITV viewing share in those homes was down by 1%.

____________________________________________________________

* Viewing is up to 28th June.  SOCI is up to 20th June.

  ITV Family includes CITV, Men & Motors, GMTV and GMTV digital channels.


Overall ITV family adult and ABC1 impact volumes have been up in 3 out of 6
months so far this year.  Our digital channels continue to grow, with the
aggregate all time viewing share up 6% at 4.5%.  ITV2, ITV3 and ITV4 all rank in
the top 10 digital channels in Freeview, the UK's biggest digital platform, with
ITV2 and ITV3 taking the first and second positions respectively.


Programme investment


ITV plc's overall programme investment in H1, including ITV1, GMTV, our digital
channels and regional programming, was approximately £500m (with minority share
of ITV1 Network Programme Budget an additional £27m).  As part of the
revitalisation of ITV1, a number of new programmes are being commissioned while
a number of longer-running programmes are being discontinued.


Interactive services


The review of the provision of interactive services is continuing.  We have in
place detailed policies and protocols to ensure the fair delivery of these
services going forward and are conducting a review of recent programmes.  We
expect to complete this over the summer and will publish the findings.


Consumer


The relaunch of itv.com (www.itv.com) as a streaming video service is
progressing well. Full functionality, including live simulcasts of ITV channels,
catch-up and archive, has been available since the launch of the 'Soaps' section
on 12 June, with the service being rolled-out thematically over the course of
the summer.


ITV Local's roll-out (www.itvlocal.tv) continues with coverage now extended to
the Meridian, Central, London, Granada and Wales regions with a programme for
the rest of the ITV plc regions by October.


ITV Play revenues have reduced very significantly since the media coverage of
PRTS issues and in the first half revenue will be approximately £9m which is
down by 67% on last year.


Friends Reunited revenue in the first half is up by over 25% on last year.


Production


Dawn Airey's arrival in October will provide us with the strong leadership to
develop and grow our UK and international production and distribution operations
building on the recent work of management in those businesses.


Carlton Screen Advertising ('CSA')


The UK cinema advertising market has continued to perform poorly, and whilst CSA
has a strong market share, it has been adversely affected by falling revenues
and onerous contractual commitments.  We expect CSA to make a trading loss in
the full year and, in addition, in the first half we are taking an operating
charge of £9m against the onerous contracts, and will write off all goodwill and
intangibles associated with the business and amounting to £28m.



John Cresswell, Chief Operating Officer, said,


'Returning stability in the total TV advertising market has been an important
feature of the first half, as has the improving schedule performance and the
roll-out of itv.com.  Our current £40m cost reduction programme continues on
plan and I would like to thank all of our employees for their continuing
commitment to building our business and our successful programme brands.


'We continue to seek a change to the CRR mechanism that governs our ITV1 airtime
sales and note Ofcom's decision to bring forward its PSB review.'


Michael Grade, Executive Chairman, said,


'Our business review is progressing well and I will announce the outcome of that
process after the summer break.'


END


ITV plc

Tel: 0844 88 18000

Press enquiries:

Brigitte Trafford - Group Communications Director


Investor enquiries:

James Tibbitts - Company Secretary

Georgina Blackburn - Head of Investor Relations


Tulchan Communications

Tel: 0207 353 4200

Andrew Grant

Susannah Voyle

David Allchurch


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