Advertising revival boosts ITV

ITV took market share as ITV's "family" of channels increased their slice of TV advertising revenue to 45.1 per cent from 44.7 per cent in 2009. Net advertising revenue (NAR) for the year advanced by £205m to £1.49bn. Moreover, analysts think NAR has risen by 12 per cent in the first quarter of 2011, and is forecasted to increase by between 8 and 12 per cent in April. But chief executive Adam Crozier warns of tougher comparatives in the middle of the year, since last year was buoyed by football's World Cup.

Mr Crozier, and his new management team, have been busy rolling out a five-year plan to make the group leaner and meaner. Improvements in the business can already been seen, with cost savings of £40m delivered in 2010 and another £15m of savings identified since.

Moreover, improved cash generation, helped by the disposals of Screenvision US and Friends Reunited, has helped drive down net debt to £188m from £612m last year. So Mr Crozier plans to reinstate dividends at the half year.

Mr Crozier has identified further challenges for ITV to address. These include its "subscale" online offerings, and its falling share of viewing and commercial impacts. To address these, ITVplans to return to the pay TV space, and drive online revenues, which have notched up by £4m to £28m. ITV will also be launching a freeveiw service, YouView, in early 2012.

To fund these plans, £25m of ITV's allocated £75m investment fund will be used this year. Capital spending is also to more than double to £80m as ITV upgrades technology and "future-proofs" key soap operas, such as Coronation Street.