ITV promises more cuts after slide in revenues

ITV is to trim its programming yet further as it continues to see advertising income plunge. Overall revenues in the first quarter slumped to £425m this year from £492m last year as advertising earnings slipped 15 per cent.

As a result the broadcaster is set to cut even deeper into programming, despite the current success of hit shows. The group said programmes like Britain’s Got Talent and England’s football match against the Ukraine kept it ahead of the BBC in the ratings.

ITV has a £155m cost-cutting target for the year and chief executive Michael Grade said it was on track with its plans: "In March, we gave details of ITV's plans

for responding to the difficult market conditions we face. We are making good progress in implementing these plans."

Chief operating officer John Cresswell announced that the group would increase its cost-saving plan by another £40m, to a total of £215m in 2010 and £285m the year after. Job cuts were also high on the agenda. Cresswell said further losses were possible on top of the 1600 that have been culled during the last year.

The company also confirmed that it had appointed US head-hunter Russell Reynolds to appoint a successor to Grade before the end of the year, after he announced he was stepping down a year earlier than expected.

WHAT THEY ARE SAYING
Maggie Brown, the Guardian: "This was a sad event. The accompanying trading statement makes it clear there's no sign of any darling green buds of May, so there will be a further £40m to come out of overheads - £20m from programming. The South Bank Show's demise fits exactly with the times. I sat three rows from the front, to study the 12-person board. James Crosby, senior independent director, but now tarred by his stewardship of the bank HBOS, was so suntanned that when one shareholder declared 'On your board you have a man who bankrupted a company' and called it 'an insult', it was impossible to tell if he blushed or not."