ITV shrugs off audience fears as ad revenues grow 5%

LONDON – ITV, the UK's largest commercial broadcaster, has experienced a 5% growth in advertising revenue for the first half of the year, despite fears of weakened ad demand and falling audience share.

ITV has seen the rate in advertising revenues increase by 5% for the first half of the year, compared with a year earlier, and 7% for September, based on advance bookings.

Charles Allen, ITV chief executive, said: "More recently, we have seen all top-10 categories growing. September is moving forwards so well because telecoms is coming back."

Speaking at the Edinburgh International TV Festival, Allen said that all ad categories were up apart from food retailers.

Allen is also set to reveal first-half results putting the network ahead of its cost-cutting expectations. ITV recently sold its publishing arm Carlton Books to a management buyout team for £3m.

It also planning to dispose of several non-core assets, including Carlton Screen Advertising, believed to be worth up to £550m.

ITV is aiming to deliver £100m annual savings after 1,000 job cuts were made in areas such as in-house, finance, airtime sales and back-office functions, saving ITV £80m.

Allen was aggressively interviewed over the weekend at the Edinburgh International Television Festival about speculation that former director-general of the BBC, Greg Dyke, could replace him.

Allen responded: "Sir Peter Burt [ITV non-executive chairman] has said he has not offered Greg the job and isn't going to do so in the future."

Earlier this year, Allen survived a shareholder coup after the recently merged Carlton and Granada saw chairman designate of the new ITV, Michael Green, ousted.

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