ITV advertising revenues climb but share of viewing fades

ITV has reported a 12 per cent rise in advertising revenues, on the day that some of its staff take part in a 24-hour strike over pay. 

The UK commercial broadcaster's performance has been helped by a pre-election bump in UK advertising spending. But a trading statement on Thursday confirmed that ITV's on-screen success continues to fade, with its share of television viewing falling 3 per cent in the first four months of 2015.

Its main channel, ITV, has been the worst performer, with audience share down 6 per cent over that period, despite popular shows such as Britain's Got Talent. 

Adam Crozier, chief executive, said that improving viewing figures was "a key focus", and that the company "expect[s] to see improvement in the second half of the year when we will have the benefit of the exclusive rights to the Rugby World Cup".

Mr Crozier's pay - which reached £8.4m in 2013 and £4.4m last year - has proved contentious with some staff, who have been offered a 2 per cent pay rise for this year. 

Members of the technicians' union Bectu and the National Union of Journalists are striking on Thursday. "Our members are helping to make the profits but are not sharing in them," Bectu general secretary Gerry Morrissey has said. 

ITV said it expected advertising revenue for the first six months of the year to increase 5 per cent. Ian Whittaker, an analyst at Liberum, said that was below his previous expectations, but the broader outlook for the ad market "should be fine". 

ITV Studios, the in-house production arm, reported organic growth of 8 per cent in the first three months of the year. Overall, ITV's external revenue rose 14 per cent to £665m in the period, broadly in line with analysts' expectations. 

The company has completed the purchase of Talpa Media, maker of singing show The Voice, in a deal worth up to €1.1bn depending on future profits.

Shares in ITV, which have outperformed the FTSE 100 index over recent months, fell 2.6 per cent in early London trading to 253.3p.

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