Granada & Carlton interims show strong profit performance

Granada and Carlton Communications interims results for the half-year to the end of March 2003 showed strong profit performance.
Granada reported profits before tax were up 35% to £65 million from £48 million on the same period last year. Though, I move that surprised financial analysts, Carlton Communications slashed dividends in line with proposals made in its £2.7 billion merger with Granada. This was despite Carlton reporting a 50% jump in profits following cost cutting measures and that the merger has yet to receive a green light from the Competition Commission. Carlton's profits leapt to £48 million although turnover slipped to £508 million, down from £524 million in 2002.
Charles Allen, Granada Chairman, said: “The ITV fight back is well underway. All our energies are on improving our core ITV and content operations.
“ITV's performance is benefiting from a clear strategy, better scheduling, more focused marketing and a bigger programme budget. However, net advertising revenue remains difficult to predict against the current uncertain economic outlook."
Granada’s turnover was up 3% on the comparable period in 2002 to £734 million. However, advertising revenue from ITV increased by only 1% to reach £442 million.
Both ITV media giants cut costs on target, and both pointed to a remodelled ITV schedule that was hailed as a success as the peak time lead over the BBC was put at 5.2% up from 3.6% in 2002.
Looking ahead Granada cautioned that advertising revenue for June 2003 is almost certain to be down on last year, reflecting the boost from football World Cup in June 2002. Revenue from ITV1 for the nine months to June 2003 is estimated to be some 1.5% below the same period last year.
The Competition Commission is expected to make a report to the Secretary of State on the proposed merger of Granada and Carlton Communications in June.
(SP)