British media group Granada, which announced last September that it was taking a 45 per cent stake in TV3, has reported a fall in pre-tax profit before digital investments and exceptionals to £112 million sterling for the six months to March 31st, 2001, from a pro-forma £127 million last year.
The interim figures did not include results for TV3, the only independent television broadcaster in the State, as Granada's acquisition of the 45 per cent stake for £38.05 million was only formally completed at the end of March.
Granada's lower first-half profits were in line with analysts' forecasts, which had ranged between £108 million to £114 million.
Net advertising revenues in the nine months to the end of June dropped 10.6 per cent to a cumulative £702 million.
The company, which is a major stakeholder in Britain's ITV commercial TV network, said it expected net advertising in July to amount to around £58 million, down more than 17 per cent on last year. Some analysts had been concerned that the July figures would drop as much as 25 per cent on the previous year.
The production and broadcasting company, maker of Coronation Street, said it was on target to deliver £30 million sterling in cost savings in its next fiscal year to end-September 2002, as it integrates the United TV assets it purchased last year.
A further £30 million in cuts would follow the next year from the previously announced reorganisation of ITV and an overhaul of its own business, which would lead to about 100 job losses.
Most digital spending went towards ONdigital, a terrestrial digital TV service operated jointly with Carlton Communications plc, that is set to be rebranded ITV Digital.
