CARLTON REPORT PROFIT LOSS DUE TO FALLING AD SALES

CARLTON Communications have announced that their profits have dropped in the last 12 months due to falling advertising sales and investment in their ITV Digital joint venture.
Profits before tax for the 12 months to September dropped by 40 per cent on the previous year to £118 million.
Chairman of Carlton Communications, Michael Green, said: “In a difficult year, our focus has been on managing our businesses to create long-term value and to ensure that Carlton are well positioned to benefit from a recovery in advertising expenditure. In the current environment it is important to concentrate on issues which in the long term deliver value, both in our wholly-owned businesses and in ITV Digital: improving our product, looking after our customers and minimising costs. These will be our touchstones over the coming year. Whilst 2001 has been tough and the broader economic outlook is mixed, we have a strong position in the UK television industry, and this remains a base from which to grow in the future.”
Carlton have also said that they plan to cut costs at ITV Digital by £45 million a year.
At the moment ITV Digital has approximately 1.1 million subscribers, but needs another 600,000 to break even. (CD)