ITV shares were up 3.2% at 11am to 113.5p, bringing welcome news for investors.
ITV, under pressure after a possible £100m shortfall was revealed because of falling audience revenues, said its total net advertising revenues continue to improve, with the six months to June 2004 estimated to be up 4.9% over the same period last year.
However, despite the weakness of BBC One's ratings, ITV1's audience share to the end of May 2004 was down to 41.8% from 42.7% for the full year 2003.
There is better advertising news going forward. July is estimated to be up 4% on last year, and for the three months from June to August 2004, it is expected to be up 5.5% at ITV1.
In presentations due to be made today to analysts in London, ITV chief executive Charles Allen will announce the growth strategy for its multichannel operations, as well as an increase in total ITV advertising revenues for the six months to June 2004.
ITV plans to invest an additional £36m in multichannel programming, which includes a doubling of ITV2's programming budget and the launch of ITV3, as part of its target to delivering £150m in multichannel revenues by 2007.
ITV said that the programming investment represented an increase of 150% and will see ITV2's programme budget double and pave the way for the launch in the fourth quarter of 35+ demographic-targeting ITV3.
As part of the focus on multichannel, ITV said it was targeting a number of new deals for ITV2 as a direct result of the additional investment including the acquisition of selected sports rights, US series and movies.
ITV is banking on the launch of ITV3 opening up an underserved market in the UK market, which it says represents a "significant commercial opportunity as it controls over 80% of the nation's wealth".
According to Allen: "Just four months after the creation of ITV our strategy is delivering. The merger has enabled us to attract and retain the best talent in the industry. Already the benefits of one ITV are apparent in our performance and efficiency. We have a strong foundation for the ambitious plans we have to grow our business."
ITV said that it is still on track to deliver the £100m of cost savings from the merger and is already achieving these savings faster than originally planned with the December 2004 target already met.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
_1.jpg)
.jpg)
