 |
       |
|
||||||||||||||||||||||||||||||
|
 |
|
ITV posts $38m annual profit UK broadcaster ITV has swung back into the black, with the company posting a £25m (US$37.6m) profit for 2009, compared with a £2.7bn loss the previous year. The annual results report also revealed former Royal Mail boss Adam Crozier will take over as CEO on April 26, when interim CEO John Cresswell leaves the company, as previously reported. ITV's profit comes after a series of cost-cutting measures, which included job losses throughout 2009. The broadcaster said its ad revenue was down 9% year-on-year to £1.29bn, but added that it outperformed the total TV ad market, which fell 11%. It forecast ad revenues to be up an estimated 7% in the first quarter of 2010 (January-March), with early forecasts for April indicating revenues up 15-20%. Group revenue fell by 7% from £2.03bn to £1.88bn, while EBITA fell from £211m to £202m, down 4%. The company delivered cost savings of £169m, ahead of its £155m target for the year, and adjusted cashflows were up by £200m, with net debt reduced by more than £100m. Cresswell said: "Faced with the worst television advertising downturn on record, we took decisive action to improve our operational performance, deliver substantial cost savings and strengthen our balance sheet. We won back share of the TV advertising market, grew our audiences in peak time and online, and increased our international production presence. "Whilst ITV advertising revenues are up 7% in the first quarter, this is against the unprecedented declines of the previous year and, over the medium term, we remain cautious. We recognise also that ITV still faces formidable challenges. However, with the concerted action we have taken, ITV can address these from a stronger position, both financially and operationally." Despite reduced programming spend, ITV said it increased its share of peak time viewing from 27.8% in 2008 to 28.2%. On the web, video views at itv.com reached 215 million, up on 85 million in 2008, and monthly unique users increased by 33% to 8.7 million. However, the company admitted it "trails key competitors in terms of online viewing and online revenues remain limited in relation to the market opportunity." The broadcaster has begun a strategic review of the whole company. ITV chairman Archie Norman said: "Over the past year the team has secured the platform for change – and change is now an imperative. The way people consume media is being transformed and the consequences for established broadcasters will be profound. "Under Adam Crozier's leadership, ITV will set out on the journey to become a very different business over the next five years. ITV's challenge is to reduce its dependence on a free-to-air model threatened by digital media and besieged by legacy regulation. We have great talent and a strong brand and our future is in our own hands." In related news, Baroness Usha Prashar is to retire from the ITV board after nearly five years on March 31, prior to ITV's annual general meeting. Prashar played a leading role in securing the appointments of Crozier and Norman. Adam Benzine 3 Mar 2010 © C21 Media 2010 
|
|
|
|
|
|
|
