ITV widens its cost-cutting plan

LONDON - ITV has extended its cost-cutting plan to its commercial division, giving Boston Consulting a wider ranging efficiency review process.

ITV widens its cost-cutting plan

The consultancy firm was first brought into ITV by Dawn Airey back in February to oversee a review of its underperforming global content division.

Despite leaving her role as managing director of global content in April, to join Five as its chairman and chief executive, Boston Consulting continued to look at cost savings in the division, now headed by Lee Bartlett.

ITV's revenues fell 5% to £2.08bn for the year to 31 December 2007, with external global content sales slumping 13% to £244m. As part of executive chairman Michael Grade's turnaround plan for the business, he is aiming for £1.2bn in global content revenues by 2012.

But the company's sales operations under Rupert Howell, managing director of brand and commercial, are now also to coming under scrutiny.

Howell said: "They are making sure we are fit for the purpose. In difficult times, you need to look at costs and efficiencies."

One analyst said: "ITV needs to look at its costs as revenues have fallen. It has new management iand Grade's plan was all about revenue enhancement, but either he has not had enough time yet, or things are not working out for it."

It is understood that Boston Consulting is yet to make any formal recommendations to ITV about restructuring or redundancies.

In its last trading statement, ITV said it wanted to deliver £41m in efficiency gains by the end of 2008, with an efficiency programme in place to "identify further savings to be delivered from 2009 to enhance earnings and fund digital investment".

Meanwhile, ITV is still to appoint a new finance director. Ian Griffiths, who left Emap in March after its sale, is tipped for the role, which is currently covered by chief operating officer John Creswell.

Topics

Market Reports

Get unprecedented new-business intelligence with access to ±±¾©Èü³µpk10’s new Market Reports.

Find out more

Enjoying ±±¾©Èü³µpk10’s content?

 Get unlimited access to ±±¾©Èü³µpk10’s premium content for your whole company with a corporate licence.

Upgrade access

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an alert now

Partner content