19th Dec 2006 07:48
ITV PLC19 December 2006 19 December 2006 ITV plc - trading update for the twelve months ended 31 December 2006 Key highlights • Michael Grade appointed Executive Chairman, effective 8 Jan 2007 • Forecast data for full year 2006 versus full year 2005 o 2006 trading in line with current expectations o Total revenues on continuing activities in line with 2005* o Net Advertising Revenue o NAR for ITV1 down approximately 12.5% o NAR for GMTV down approximately 3% o NAR for ITV digital channels up approximately 40% • Adult Share of Commercial Impacts (SOCI) year to date# o ITV1 down 10.4% at 33.3% o GMTV down 4% at 2.5% • ITV digital channels up 37% at 6.6% • 2007 programme investment in line with 2006 • Operational efficiency savings currently on target to deliver £40m by 2008 Net advertising revenue Whilst ITV1 NAR was approximately 12.5% down in 2006, this is better than theexpected outcome under the Contract Rights Renewal (CRR) mechanism, partlyreflecting strong growth from regional television advertising which ITV is bestplaced to provide. Sponsorship, interactive and on-line revenues are also upyear on year. Schedule performance ITV1 remains the UK's most popular channel in peak time with an average peaktime share so far this year for adults of 27.3%, compared to BBC1's 24.5%,BBC2's 9.3%, C4's 8.8% and Five's 5.6%. Since the Autumn Schedule began ourpeak time share has been 29.0%. The all time adult viewing share for ITV1 andGMTV combined has been 20.4% for the year to date. Our digital channels continue to show good growth with the aggregate all timeshare of adult viewing in multichannel homes for the year to date up 17.8% at4.3%. ITV2, 3 and 4 are all now in the top 7 digital commercial channels byadult viewing share and we have exceeded our revenue target (of £150m of NARfrom these channels by 2007) a full year ahead of expectations. Programme Investment In 2007 ITV plc is budgeting programme investment being maintained atapproximately £1 billion. This includes ITV1 total network budget of £815m(less a contribution from ITV minorities of approximately £55m), ITV1 regionalspend of c£120m and GMTV programming of c£30m plus ITV channels investment ofc£100m. Maintaining the programming investment on ITV1 will deliver new andimproved programming to our customers, contributing to schedule performance, andto SOCI. Under the CRR mechanism movements in SOCI proportionately affectITV1's share of total TV advertising revenue in the following years. The investment in programming for our digital channels in 2007 is funding anincrease in the number of original commissions and acquisitions, enablingcontinued growth in viewing share. Consumer We expect the full year 2006 turnover from our Consumer operations to be atleast twice that achieved in the first half, with Friends Reunited continuing tomeet its business plan. Our entertainment portal, www.itv.com, launches in theSpring and we are developing ITV Local broadband television, www.itvlocal.tv,adding London and Central regions to the current Meridian region trial. Production ITV Productions has had a successful year with 8 out of the top 10 shows on ITV1made by ITV Productions. Production revenue outside ITV1 is growing stronglyboth in the UK and internationally. We have also seen good growth in ourinternational secondary programme sales and in ancillary revenues. John Cresswell, interim Chief Executive, said: "2006 trading remains in line with current market expectations and, whilst theairtime sales environment remains challenging, our digital channels continue toperform strongly. I am delighted to welcome Michael Grade as Executive Chairmanof ITV and we look forward to working with him in the New Year." For further enquiries please contact: ITV plcTel: 020 7843 8000Press enquiriesBrigitte Trafford - Communications DirectorJim Godfrey - Head of Corporate Affairs Investor enquiriesJames Tibbitts - Company SecretaryGeorgina Blackburn - Head of Investor RelationsCaroline Bailey - Investor Relations Analyst Citigate Dewe RogersonTel: 020 7638 9571Jonathan ClareGeorge CazenoveNicola Smith Website: www.itv.com; investor information: www.itvplc.com * Revenue from discontinued businesses £37m in 2005 # 2 January 2006 to 9 December 2006 Editor's note: Following the acquisition of a 17.9% shareholding in ITV plc byBSkyB there are two separate regulatory processes currently being conducted byOfcom and the OFT under the Communications Act and Enterprise Act respectivelyand the outcome of those processes will be announced in due course. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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