After last week's humiliating £5.67 million fine from regulator Ofcom, ITV chairman Michael Grade came out fighting today telling shareholders that the broadcaster is set to outperform the rest of the television industry for the first time in eight years.

He said: "The turnaround plan which we launched last September remains on track. The forecast for the first half of this year shows us outperforming the UK television advertising market - the first time this has happened since 2000."

But as part of his cost saving plans Grade said the company would not increase its spending on programmes this year or next.

Much of that, he claimed was due to having dropped expensive Formula One coverage and securing the Champions League for another two years while making efficiencies on home-grown and bought-in programmes.

In the first three months of the year group revenues rose by 3% to £492 million with all the growth coming from overseas programme sales and online business. Net advertising revenues in the quarter were 2% ahead but are likely to be flat across the first half, which is relatively strong against a television advertising market expected to fall by 1%.

Grade said: "Given the wider economic context, the television advertising market has held up relatively well. In an uncertain economic environment, ITV continued to deliver advertisers real value."

Regulators have yet to give their final ruling on the order for BSkyB to sell most of its 18% stake in ITV.