British broadcaster Granada has reported a leap in half-year profits, beating market expectations on the strength of shows such as I'm a Celebrity, Get Me Out of Hereand sending its shares higher.
Profit before tax, goodwill and exceptional items for the six months to March 31st rose to £92 million, from £75 million a year earlier.
"It seems like a lot of the scare stories about advertising are turning out to be just that." said analyst Mr Paul Richards. Advertising at the ITV television network, in which Granada and its planned merger partner Carlton are the largest shareholders, climbed slightly in the first half, putting to rest fears of a steep drop-off.
But Granada said there was little visibility in the sector, and that it expected advertising revenues in the nine months to end-June to decline 1.5 per cent due to tough comparisons with last year's World Cup.
Analysts said revenue gains came mostly from Granada's television production arm, which sold the rights to a hit documentary on Michael Jackson and the reality show I'm a Celebrity. Profits were bolstered by cost cuts.
Granada shares were up 7.3 per cent to 77p today. Shares of Carlton, whose merger with Granada is pending while regulators examine the deal, were up 6.9 per cent at 112p.
The company said its share of advertising revenue from its ITV1 and ITV2 channels rose one per cent to £442 million in the first half.