ITV has the X factor

A 5 per cent increase in net advertising sales sent ITV's broadcasting revenues up 6 per cent. That includes particularly strong growth from the high-margin online business, which grew its sales by more than a quarter to £85m, reflecting the launch of ITV Encore, the group's maiden pay-TV channel, soaring demand for online video and the continued rollout of ITV Player, the group's on-demand video service. The division's adjusted cash profit rose 26 per cent to £315m.

Robust overseas demand lifted ITV's production division. Profits there leapt 18 per cent to £85m as organic sales growth of 8 per cent was supplemented by the acquisition of Talpa Media - creator of The Voice - and US producer Leftfield Entertainment.

The one sore spot was a 4 per cent slide in the audience share of ITV's main channels. That reflected stiff competition from the BBC and the absence of a major sporting event. Management expects ITV's exclusive rights to the Rugby World Cup in the autumn, new shows such as Jekyll and Hyde and continued investment in a wide range of programming to stem the slide.

They also remain bullish on advertising demand, predicting that net ad sales will rise 8 per cent in the third quarter and 6 per cent for the nine months to end-September. Broker Numis bumped up its pre-tax profit forecast for the full year to £830m, giving EPS of 16p, rising to £905m and 17.3p next year (from £712m and 13.7p in 2014).

Although ITV's operating cash inflows swelled by 22 per cent to £388m, forking out £362m for Talpa Media meant the balance sheet swung to net debt of £540m.