Despite the drop, the company held its dividend and executive chairman Michael Grade claimed his turnaround plan is on track.
The 2007 results show that escaped the major ad revenue and viewing declines that plagued it in 2006, but had problems in its content production side where revenues (excluding internal sales) fell 13% to £244m.
Premium-rate services revenues are estimated to have taken a hit of around £50m as a result of last year's scandals centring on broadcasters ripping off viewers.
Ad revenues across the whole family of ITV channels totalled £1.489bn, down slightly from £1.494bn in 2006. ITV's digital channels grew their revenues by 33% to £209m.
ITV1, the flagship terrestrial channel, lost viewing share as the UK's take-up of digital TV accelerated. However, it suffered the smallest loss of all the five terrestrial channels. It was down 2.1% compared to Channel 4's 10.3%.
ITV1's share of commercial impacts -- the critical measure used in the regulatory CRR mechanism set up to mitigate ITV's dominance of the airtime market -- declined from 33.1% in 2006 to 32% in 2007.
Online revenues amounted to £33m, up 44% from 2006. However, the cost of relaunching and fully rolling out meant the division lost £12m before interest, tax and amortisation, compared with a £1m gain in 2006.
Grade said: "In my first year back at ITV, we put together a growth strategy for the business and strengthened the senior team. The first priority for ITV was to stem the decline.
"We did more than that, delivering an increase in viewing to the ITV family for the first time in over a decade. For the first time in many years, ITV1 outperformed its competitors and we've continued to do so into 2008."
The board's decision to recommend holding the dividend reflects their confidence in the strategy for growth and the team we have in place to deliver it. The turnaround plan is on track."
ITV's share price climbed 1.5% from yesterday's close to 67.5p.
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