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ITV warned today that the spiralling fall in its advertising revenues is set to get worse before it gets better.
Despite the huge success of Britain's Got Talent and drama Whitechapel, ITV's advertising revenues fell by 15% in the first three months of the year, are likely to have fallen by 16% last month and will be down by 18% in May and June.
"It is still a very tough advertising market out there and people are leaving it later and later to book airtime," said chief operating officer John Cresswell who is one of the front runners to take over as chief executive officer when Michael Grade relinquishes his executive role as chairman later this year.
"The second half will look better," added Cresswell. "But that's largely because the comparisons with the previous second half will become easier because the ad downturn had started by then."
Cresswell also announced that ITV would increase its costs savings by another £40 million to a total of £215 million in 2010 and £285 million in 2011.
He said he could not rule out further job cuts but said they would be "nothing like on the scale we've announced already." ITV has cut some 1600 staff in the last year. Around half the savings will come from spending less on programming and the other from other cuts.
The board kicked off the search for Grade's replacement officially this morning with the announcement that US giant Russell Reynolds has been chosen as headhunters.
As well as Cresswell the other main internal candidate is commercial director Rupert Howell.
The leading external candidate is former Sky boss Tony Ball who is favoured by at least one major institutional investor.
Cresswell today said that he was not aware that there was any particular pressure from investors to make an appointment quickly. Grade has said that he plans to be kicked upstairs - going from executive chairman to non-executive chairman - "by the end of 2009" when many of the uncertainties commercial broadcasters face over red-tape should have been resolved.
Grade said today: "We continue to press for rapid regulatory progress and are encouraged by the growing support for public funding to sustain regional news, ahead of the Digital Britain report next month."
ITV shares fell 11⁄2p to 31p.
