13 December 2007
13 December 2007
ITV plc - trading update for twelve months ending 31 December 2007
ITV Turnaround Plan on track
2007 performance in line with expectations
• Net Advertising Revenue has stabilised
- ITV family NAR down 0.6% (versus 8.4% fall in 2006)
- ITV1 NAR down 4.4% (vs 12.4% fall in 2006)
- ITV digital channels NAR increased by approximately 32% to £209m
• ITV viewing performance has improved
- Volume of commercial impacts up 3.1% across all ITV channels
- ITV1 volume of commercial impacts up 1.0% and ITV2 impacts up 21.8%
- ITV1 share of commercial impacts down 3.3% (vs decline of over 10% in 2006)
• Continuing focus on controlling costs and efficiency
- Disposals in 2007 have yielded £103 million
- On track to deliver planned £40 million efficiency savings by 2008
- 2007 programme investment maintained at approximately £1billion
Executive Chairman of ITV plc, Michael Grade said:
'ITV plc has made measurable progress during the course of 2007. On-screen
ITV1's performance has been much improved; we have assembled a formidable senior
management team; and we've seen real growth in the whole television advertising
market over the second half of the year.
'ITV is finishing 2007 strongly. ITV1 NAR in November was 2% up year on year
and, with late money still entering the market, estimates for December continue
to improve. Over the second half of 2007 we expect ITV1 NAR to be flat year on
year, with NAR across all ITV's channels up 3.5%, and we can see no evidence of
advertiser demand weakening.
'Our focus for 2008 is on implementing the turnaround plan set out in September
and maintaining the positive momentum in ITV1's viewing performance.'
Progress on Turnaround Plan
ITV estimates that the total UK TV advertising market is up over 6% across the
second half of 2007 and over the full year has grown by around 3%.
ITV1 has remained the UK's most popular channel in peak time with 25.4% of total
peak viewing, well ahead of it nearest commercial competitor. In terms of all
time viewing, ITV1 has held share year on year in analogue terrestrial and
multichannel homes. Whilst the continuing transition to digital resulted in a
modest decline in overall ITV1 viewing share, ITV1 outperformed its two major
ITV has continued to build viewing to its digital channels. In September 2007,
ITV2 beat Channel 5 for 16-34s viewing in multi-channel homes for a full
calendar month for the first time.
In October ITV published the Findings of the Deloitte Review and ITV
Investigation into premium rate services (PRS) within ITV programmes. The
results of any ongoing Ofcom investigation into ITV's PRS activities are
expected in the New Year.
Dawn Airey joined ITV plc as Managing Director of Global Content in October and
is putting in place a senior team to lead the integrated global content
division, incorporating international and domestic production and distribution.
On December 5th, ITV plc announced the acquisition of 12 Yard Productions, a
producer of programmes for UK and international broadcasters, with its own
formats including In It to Win It, Eggheads and Who Dares Wins. ITV can confirm
that 12 Yard has secured a major commission from the BBC for over 300 further
episodes of Eggheads.
In November itv.com attracted 6 million unique users (an increase of around 60%
since the site's relaunch) and achieved 88 million page impressions.
itvlocal.com attracted 750,000 unique users in November.
In November ITV announced a broadband joint venture with the BBC and C4 to
complement itv.com. The planned service will include archive programming from
the UK's three main broadcasters and ITV's share of revenues will contribute to
its 2010 online revenue target.
Friends Reunited has continued to build its revenues. ITV is exploring means of
introducing a greater proportion of advertising funded content to the site in
order to maximise its value over the long-term.
1. ITV plc's 2007 full year results will be announced on 5th March 2008.
2. All figures for net advertising revenue are based on ITV plc's current
forecasts for the full financial year (and compared to the full 2006 financial
3. All figures for viewing and commercial impacts are based on BARB/Infosys
data for adult impacts and individuals viewing for the year to 2nd December (and
the equivalent period in 2006).
4. ITV family includes: ITV1, ITV2, ITV3, ITV4, CITV, GMTV1, GMTV2 and Men&
5. ITV digital channels include: ITV2, ITV3, ITV4, CITV, GMTV2 and Men&
For further enquiries please contact:
Tel: 0844 8818000
Mark Gallagher - Group Director of Corporate Affairs
Jim Godfrey - Director of Corporate Affairs
Tel: 084488 18434
James Tibbitts - Company Secretary
Tel: 084488 15656
Christy Swords - Director of Investor Relations
Tel: 084488 15651
Pippa Strong - Head of Investor Relations
Tel: 0844 8814767
Tulchan Communications Group
Tel: 020 7353 4200
Website: www.itv.com, investor information: www.itvplc.com
This information is provided by RNS
The company news service from the London Stock Exchange