ITV upbeat on advertising

BROADCASTER ITV bucked the downbeat trend in the rest of its sector today by predicting that advertising revenues would rise by 3% in the first six months of 2005. It also outlined plans for its new ITV4 channel.

The rise in revenue was less than growth of 4.7% recorded during the whole of last year. But ITV shares lifted 4% as investors expressed relief that the slowdown was not more serious.

Many media groups have suffered badly from the downturn in advertising spending in recent months.In addition to its main ITV terrestrial channel, the group also owns 75% of the GMTV breakfast channel and has a trio of digital channels in ITV2, ITV3 and the ITV News Channel.

Main drivers of growth were expected to be ITV News and GMTV. Advertising revenues for the other three channels were expected to be broadly the same as last year.

ITV also confirmed rumours that its new ITV4 channel will be targeted at male viewers.Chief executive Charles Allen told the group's annual meeting: 'We will launch another new channel, ITV4, later in the year aimed at a male demographic.'

Insiders had suggested the channel would be geared to readers of 'lad mags' with a 'Men and Motors' slant. However, today ITV broadcasting boss Mick Desmond insisted: 'It's going to be a male-biased channel but it's absolutely not Men and Motors. It's going to have a more populist feel, aimed at men of all ages.'

He said full details would be revealed this summer, ahead of an autumn launch. It will feature sport, US sitcoms and police dramas. 'In the same way ITV2 is young and more female and ITV3 is older and more upmarket, ITV4 will be more male-biased but with a generalist programme,' Desmond added.

The launch follows the 'exceptional' performance of its other new digital channels ITV2 and ITV3. Earlier this year, the company revealed that pre-tax profits had increased by 57% to £340m in its first year as a unified company.

Shares in ITV, a result of a merger between Granada and Carlton last year, rose 3¾p to 119p.