Industry | 2010.03.03
ITV returns to profit
Broadcaster reports profit of £25m for 2009 after £2.7bn loss in 2008, as it prepares for arrival of Adam Crozier at end of April
ITV has reported a pre-tax profit of £25m for 2009, as it revealed that its new chief executive, Adam Crozier, will start on 26 April.
The broadcaster, which posted a loss of £2.7bn in 2008 , said TV ad revenues in 2009 were down 9% year on year to £1.29bn. Total revenue across the ITV group fell 7% year on year to £1.88bn, in line with analyst expectations.
However, the company said it had a strong close to the year, outperforming the total TV ad market, which fell 11%. It said it expects TV ad revenues to be up by 18% year on year in March and up 15% to 20% in April. TV ad revenues are expected to be up by 7% overall inthe first quarter.
The company reported a 43% fall in adjusted pre-tax profits from £167m to £94m. Earnings before interest, tax, depreciation and amortisation were £202m, down 4% on 2008.
ITV said that in future it intends to alter the way it measures adjusted pre-tax profits. On this basis, it says that pre-tax profits were £108m, down 4% year on year.
The ITV chairman, Archie Norman, continued his reshuffle of the broadcaster\'s board with the announcement that Baroness Prashar will stand down from her role at the end of March after five years. Norman also revealed that Crozier, the former Football Association boss and current chief executive of Royal Mail, would be joining ITV at the end of April.
"Under Adam Crozier\'s leadership, ITV will set out on the journey to become a very different business over the next five years," said Norman. "ITV\'s challenge is to reduce its dependence on a free-to-air model threatened by digital media and besieged by legacy regulation."
The company\'s pension deficit, which has been a continued cause for concern for potential investors, stood at £436m at the end of the year. This is up from £178m at the end of 2008.
The company said that it had reduced costs by £169m last year, ahead of its target of £155m. This included £50m in efficiency savings and £110m in a reduction in schedule costs.
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