ITV overhaul working, insists Grade

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While his first full year at the helm resulted in a 35% drop in annual profits to £188 million, Mr Grade said the ITV stable of channels had delivered their first viewing increase last year since 1993.

The broadcaster - whose flagship channel ITV1 is home to shows such as Britain's Got Talent, Lewis and Wild At Heart - was also outperforming the competition in terms of ratings and revenues, he said, with total net advertising sales up 2% so far this year.

Shares in the group have nearly halved in the past year as the difficult advertising market took its toll.

Mr Grade, who promised a content-led overhaul when he started the job in January 2007, said: "The first priority for ITV was to stem the decline. We did more than that, delivering an increase in viewing to the ITV family for the first time in over a decade.

"For the first time in many years, ITV1 outperformed its competitors and we've continued to do so into 2008."

He added: "The viewers are coming back to ITV, followed by advertisers. The key, key metric of our on-screen performance has absolutely turned around."

The former Channel 4 boss and BBC chairman said he was focused on a three to five year growth plan.

Last week he unveiled the former BBC1 controller Peter Fincham - the man behind the corporation's revamped Doctor Who series - as his new director of television. He lost his job at the BBC in October after incorrectly suggesting that the Queen had stormed out of a photo shoot.

"We are fixing the fundamentals of the business and the earnings will follow if we maintain this progress," Mr Grade said.