GRANADA’S ADVERTISING REVENUE FALLS

GRANADA have released their Interim Results for the six months ended 31 March 2001 that show a fall in net advertising revenue of 5.4 per cent.
Steve Morrisson, Chief Executive of Granada, said: “In our broadcasting business our net advertising revenue fell by 5.4 per cent on a like-for-like basis in the first half. In production we have continued to consolidate our position as one of Europe’s largest producers of content, and our production revenue grew by ten per cent in the period. Beyond ITV, our UK production sales grew by 50 per cent.
“We are taking action which will deliver total cost savings of £60m pa by 2003. We are reorganising our business into two simplified divisions – platforms and content – and are on track to deliver £30m of savings from the United integration of 2001/02, a share of the £20m savings from the new ITV partnership, and a further £20m from our own business organisation.”
Against the backdrop of the current downturn in net advertising revenue, Granada have reviewed all of their operations and have begun a major reduction cost programme, which, combined with the benefits of the consolidation of the United businesses and ITV integration, will deliver £60 million pa in reduced costs by 2003.
On a brighter note total sponsorship revenue grew by eight per cent in the first half of the year to £12 million, despite last year having had over £2 million of sponsorship for sports events not repeated this year.
Granada have created broad-based media packages centred on ITV advertising and include airtime on other channels, programme sponsorship, on-air credits, online sponsorship and merchandising. (CD)