News releases 2008
News releases
ITV plc - trading update for twelve months ending 31st December 2007
13/12/2007
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
Broadcasting
ITV estimates that the total UK TV advertising market was 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 commercial competitors.
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.
Content
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.
Online
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.
Notes:
- ITV plc’s 2007 full year results will be announced on 5th March 2008.
- 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 year).
- 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).
- ITV family includes: ITV1, ITV2, ITV3, ITV4, CITV, GMTV1, GMTV2 and Men&Motors.
- ITV digital channels include: ITV2, ITV3, ITV4, CITV, GMTV2 and Men&Motors.
For further enquiries please contact:
ITV plc
Tel: 0844 8818000
Press queries
Mark Gallagher – Group Director of Corporate Affairs
Tel: 084488 18180
Jim Godfrey – Director of Corporate Affairs
Tel: 084488 18434
Investor queries
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
Andrew Grant
Susanna Voyle
David Allchurch
Website: www.itv.com, investor information: www.itvplc.com