Combined ad revenue for all ITV channels in the first half was strong, with ITV2 and ITV News showing a 68% increase in ad revenue. The performance is the network's best since the dotcom boom in 2000, with the quarter to September 2004 showing an estimated rise of 5.5%.
Turnover rose 1% to £989m, which was below analyst expectations in the range of £994m to £1.08bn.
Despite the strong profits peformance, ITV's shares dropped back in early trading falling 1.9% or 2p to 103p.
There was strong growth in first-half operating profits before amortisation and exceptional items to £122m, with total net cash flow from its operating activities growing to £207m.
Both of these measures have benefited from the 4% growth in ad revenues and from the cost-saving programme that has been delivered ahead of schedule, where ITV is raising its final target to £120m.
Charles Allen, chief executive of ITV, said: "We are driving real growth, restructuring ITV, achieving our cost-saving targets six months early and increasing our cost-saving target for the future."
The results also revealed ITV2's viewing share was up 20%. Combined with the launch of ITV3 in November to the lucrative 35-plus demographic, ITV is expected to secure a total multichannel ad revenue of £150m by 2007.
Sir Peter Burt, ITV chaiman, said: "During the coming months, we will be working hard on the ITV1 programme schedule and believe that we have a strong line-up for the autumn season including a large number of returning series that rated highly on their last screening."
Sir Peter was confident that ITV would recover lost viewers in the coming months, bringing welcome news to advertisers.
"This gives us confidence that we will recover some of the viewing share that over recent months has moved towards the smaller digital channels, including ITV2, which has continued to be extremely successful," he said.
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