ITV cuts extra 40m in costs
ITV SAID yesterday it will impose an additional £40m in cost savings in 2010, as it forecast that advertising revenue would fall by 16 per cent in the first half of the year.
The struggling broadcaster said that it was making good progress towards its original target of cutting costs by £155m this year, but that it has increased its 2010 target to £215m.
ITV, which held its annual general meeting yesterday, said sales had fallen 13.6 per cent to £425m, and advertising revenues over the period dropped by 15 per cent – though it expects further deterioration over the coming months.
“The television advertising market remains weak. However, ITV continues to outperform the market,” said executive chairman Michael Grade, who will step down from day-to-day duties by the end of the year.
However, ITV’s audience share remained stable at 23.4 per cent.
The company confirmed it had £108m of covenant-free bond financing and loans, including a £50m loan – which may be extended by the lender to a total of £200m – and £58m in bonds.
The commercial broadcaster’s stock closed down 1.5p at 31p.