ITV's picture looking bleak as group reveals 28% slump in pre-tax gains

ITV, Britain's biggest free-to-air commercial broadcaster, has revealed underlying profits for the half year to June 30 slumped 28 per cent as it battled an advertising slowdown.

The adjusted pre-tax profits came in at £91 million for the period, compared with £127m a year ago.

The firm, headed by industry veteran Michael Grade, said its total net advertising revenue (NAR) was flat in the eight months to August compared with a year earlier.

However, September's NAR is expected to be down 20 per cent because of a weaker market and the impact of last year's Rugby World Cup on the figures.

The broadcaster said it was targeting an extra £35m of savings by the end of 2010.

ITV1's schedule was re-launched early in the year with notable successes including Wild at Heart and Benidorm, starring Johnny Vegas. Mr Grade said: "We cannot control the economic environment in which we operate.

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