ITV shares take 24% dive

THE ITV share price ended last week at its lowest since the television company was formed through the merger of Granada and Carlton Communications in February.

Company executives are said to be 'very disappointed' that efforts to woo investors have not led to a rise in demand for its shares, which have slumped 24% from 141p to 107 1/4p in five months.

Top bosses, including chief executive Charles Allen and finance director Henry Staunton, have recently met analysts and investors to stress the benefits gained through the £5.8bn merger of Carlton and Granada to create ITV. The company is on course to make £100m in annual savings.

But the company has been hit by industry figures analysing the number of people who watch adverts. They show that on its main channel, ITV1, its share dropped 5% in the first half of this year compared with the same period last year.

At the end of June, it had just over 41%, compared with more than 43.6% last year. In contrast, Five (formerly Channel 5) was up 1.6%, while Channel 4 was flat. And the two weeks to July 4 saw ITV1's audience share hit an all-time low of just over 20%.

The falling share price will put renewed pressure on Allen, who is under orders from ITV chairman Sir Peter Burt to deliver growth to investors.

ITV said it had outperformed the stock market's media sector over the past year and said its falling share price in the past month put it in line with other media stocks.

It also stressed that the summer months are always weak for commercial television companies and that its autumn programming schedule is regarded as strong by independent observers.