ITV reassesses strategy as it slashes revenue forecasts

Reporting its financial results for the six months to 30 June, ITV said the company had "reassessed the turnaround strategy with management in the light of the weaker advertising and economic outlook". The strategy, unveiled in September 2007, was ITV executive chairman Michael Grade's blueprint for the broadcaster when he joined last year.

ITV said given the economic uncertainty, it would not hit the global content and online targets laid out last year.

In online, ITV said it now hoped to grow its annual revenues organically to £150m by the end of 2012, two years later than planned. This reflects the regulatory delay to the planned Kangaroo VoD service, which is now likely to launch next year.

In global content, ITV is seeking to grow its annual revenues to £1bn by the end of 2012. The previous target was to double revenues to £1.2bn by then.

Meanwhile, the broadcaster confirmed that it expects TV ad revenues for September to be down 20% year on year, with the total TV market expected to be down 17%. ITV estimates that total ad revenue for the eight months to August will be down 1% year on year.

Revenue for the six months to 30 June rose 3% to £1.03bn. ITV said net advertising revenue for the channel portfolio was up 1%, with viewing share up 2.5%.

ITV's broadcasting target of an ITV family share of commercial impacts of at least 38.5% in 2012 is unchanged. But the broadcaster said group revenue growth will be "largely dependent on television advertising market growth".

ITV is continuing to reduce costs, with Boston Consulting Group reviewing global content and sales activities. The broadcaster has a new target of £35m of additional cost savings by the end of 2010. ITV is already on track to deliver £41m in savings by the end of this year and £40m of additional regional savings from the end of 2009.

Grade said: "While our visibility on advertising revenues beyond September is limited, with a strong schedule in place for the rest of the year and planned for 2009, we are confident that we will continue to outperform. However we cannot control the economic environment in which we operate. As a result of the recent slowdown in the television advertising market, the board has taken some tough decisions which are reported here today."