ITV predicts ad pick-up

Broadcaster ITV cheered investors with forecasts for a surprise rise in advertising revenue next month.
 
The FTSE 250 group is predicting a 4% rise in net advertising revenue (NAR) in December - the first monthly gain since the first half of 2008.
 
It put the improvement down to extending its lead over BBC1 in prime time viewing with shows including the X Factor and Doc Martin - allowing it to charge advertisers more.
 
As of 26 October, ITV family's share of peak time viewing in the year to date stood at 27.6% with ITV1's share at 23.1% compared to BBC1's 22.2%.
 
Net advertising revenue is now expected to be flat in the fourth quarter, with October down 3%, November down 1% and December up 4%.  Over the full year, total NAR for the UK is forecast to be down 12% - ahead of the market.

For an alternative view on ITV check out our iBall TV episode.
 
ITV said the growth in advertising revenue is mainly coming from food retailers with finance and cosmetics contributing to a lesser extent.
 
The commercial broadcaster, which is still looking for a replacement for Michael Grade, saw total revenue for the nine months fall 11% to £1.31 billion.
 
John Cresswell, ITV's chief operating officer, said: "Whilst our visibility is limited, the outlook for the fourth quarter has continued to improve and ITV is continuing to outperform the market. With further cost savings and a strong schedule in 2010, including the World Cup, we are confident that ITV is well-positioned to benefit from any market recovery."
 
ITV has badly suffered in recent times from a downturn in advertising revenue as a result of the credit crunch as well as increased competition from new digital channels.
 
The broadcaster posted a pre-tax loss of £105 million in the first half of the year.
 
Shares in the group soared by as much as 8% during morning trading before dropping back.