ITV cautious despite ad recovery

3rd Mar 2010 07:03

ITV remains cautious despite returning to profit last year and keeping adjusted profit steady, as a marked bounce-back in advertising spend in early 2010 is flattered by weak comparatives.Pre-tax profit for the 12 months to 31 December was £25m against a £2.7bn loss the previous year on revenue down 7% to £1.87bn. Profit before tax and exceptional items dipped 4% to £108m.Television advertising revenues dropped 9% in 2009 to £1.29bn, but that was ahead of the total market which fell 11% and the first quarter of 2010 is estimated to be up 7%. Early forecasts for April indicate an increase in ad revenue of 15-20%, but the group warns that in the second half, and particularly the fourth quarter, comparatives are more challenging and the wider economic outlook after the forthcoming election remains uncertain. "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," said interim boss John Cresswell."However, with the concerted action we have taken, ITV can address these from a stronger position, both financially and operationally." Adam Crozier joins the company as chief executive on 26 April to team up with chairman Archie Norman.Separately, Baroness Usha Prashar will be retiring from ITV on 31 March after nearly five years on the board. She's a busy woman as member of the Iraq Inquiry and chairman of the Judicial Appointments Commission. There's no dividend this time round.