ITV Digital has already cost Granada and Carlton, its partner in the venture, £800m and looks set to cost them a further £300m before it breaks even. Granada said the platform's losses widened to £234m from £185m last time, pushing Granada's losses before interest and tax up to £186m.
However, at its preliminary results today, the company said there would be cuts throughout ITV Digital, which has cost Granada alone £394m to date, to make savings of £104m in 2002.
Granada revealed that it is expecting to close health and beauty TV channel Wellbeing, its joint venture with Boots which has run up losses of £30m. Boots, which owns 60% of Wellbeing, has confirmed that the venture's future is currently under review.
The broadcaster is also said to be in talks with the Football League. Chairman Charles Allen confirmed that the company had been talking to the league, but refused to be drawn on whether the talks are aimed at renegotiating its £315m Nationwide League deal.
ITV has so far denied that it can not guarantee payment of the £184m it owes for its three-year deal with the league and the Worthington Cup.
However, Granada could get some respite as top First Division teams, including Manchester City and Birmingham, want to join the new Phoenix League, which is set to become a two-tiered version of the Premiership.
With the exit of these teams from the First Division, it would give ITV the opportunity to renegotiate its contract with the league.
Allen said that ITV was close to signing a deal for carriage of ITV Sport on BSkyB after the £13m-a year deal was struck for carriage of ITV1 and ITV2 last week.
Granada's shares had fallen 0.34p this afternoon to 147.5p.
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