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First half pre-tax profits were up 12% to £171m, and the company has applied a 2% increase to the interim dividend to shareholders, as it tries to keep them onside amid discontent with its share price.

However, the outgoing chief executive Charles Allen was unable to provide good news about ad revenues, which were down 4% across all channels in the first half.

Allen said he expected that figure to turn into a 14% decline in the third quarter, equivalent to an 8% decline for the first nine months.

ITV's share of commercial impacts (SOCI) has also dropped. It has recently seen itself losing out in the ratings battle to Channel 4 as reality show 'Love Island' is trounced by rival 'Big Brother'.

The entire portfolio of channels is down from a 42.2% share of impacts in the first half of 2005 to 40.2%, while ITV1 is down from 37.5% to 34.2%.

The broadcaster said it was still in dialogue with regulators about a review of Contracts Rights Renewal, which has exacerbated the decline at ITV1, and about reducing its public service broadcasting commitments.

Outside ITV1, the picture was rosier with revenue growth evident across digital channels, production and the new consumer division.

Ad revenues for ITV2, ITV3, ITV4, CITV and Men & Motors were up 46% to £70m and viewing was up by 12.3%.

Production revenues were up 9% to £127m, helped by sales to other UK and international broadcasters of programmes such as 'Brainiac' and 'Hell's Kitchen'.

Revenues at its new consumer division increased more than 300% to £69m. Interactive channel ITV Play delivered £9m profit, while Friends Reunited revenue increased more than 50%. ITV acquired the internet business in December last year.

The consumer division is working on the launch of an ITV Broadband portal for the first quarter of 2007, and recently agreed a deal with mobile network 3 to make ITV1 its first live streamed channel.

This growth, when combined with ITV1's drop in ad revenue, puts the company well on its way to its stated target of bringing in 50% of revenues from outside ITV1 by the end of 2010.

It wants to achieve revenues of £250m per year from its digital channels and interactive assets by the end of 2008.

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