Britain's biggest commercial TV firm ITV, formed by the merger of rivals Carlton and Granada, said day it was on track for £100 million of cost cuts, with the advertising market more stable.
The company said its earnings before interest, taxes and amortisation for the 12 months to December 31st would have been £222 million if the company had been combined during that period, in line with analyst expectations.
ITV, with more than half of the TV advertising market, said its advertising revenue was down two per cent in 2003 due to a lower viewing share. Britain's broadcast networks have been steadily losing viewers with the increase in homes that have access to dozens of channels through satellite or cable.
ITV expects advertising revenue to increase by £4 million in the three months to March 31st, with ad revenue at its flagship ITV1 station up slightly for the quarter and set to grow "closer to the overall market growth" in 2004.
Shares in the company fell 2.4 percent to 133 pence in morning trading, with some investors looking for the company to boost projected cost savings from the merger.
"There had been some false expectations that cost savings could be higher. They still might be but it's not the time for ITV to say that," said Investec media analyst Kingsley Wilson. "The cost savings are on target, and the company is continuing to deliver."