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The boss of ITV warned the company is suffering the worst advertising slump since the financial crisis.
As first-half profits tumbled 79 per cent to £45m, chief executive Carolyn McCall said revenues in the six months to the end of June were 11 per cent lower than the same period last year.
She pinned her hopes on an improvement during the current women’s football World Cup and the upcoming Rugby World Cup as well as the return of Big Brother.
But she warned: ‘A large part of our business is in the UK, and so the catalyst will be consumer confidence, business confidence, interest rates coming down, inflation coming down and much better advertising markets.’
On the current situation, McCall said: ‘It is the worst advertising recession we have seen since the financial crisis.’
ITV has suffered as companies cut back advertising spending in the face of economic turmoil.
Agencies such as S4 Capital have recently said these cuts were especially strong across the tech industry, which has been trying to keep a tight lid on costs. ITV expects a further 4 per cent dip in ad revenues in July before a 7 per cent rise in August.
‘It is too early to give a forecast for September, but early signs are positive and we expect to see growth in total advertising revenues in the third quarter, with continued strong growth in digital advertising revenues,’ ITV said.
But shares jumped 4.1 per cent, or 2.88p, to 72.44p as revenue at ITV Studios, which makes Love Island and The Chase, rose 8 per cent to hit £1billion in the period for the first time. And digital advertising across its streaming service ITVX grew by 24 per cent.
Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said: ‘It’s encouraging to see the Studios business picking up the pace – making content for the new binge-watching culture is a good place to be.
‘ITV are up against stiff competition here too though and we’re still some way off from ITV being solely reliant on this more lucrative revenue stream.’
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