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ITV today cheered the City with forecasts of a strong upturn in advertising in the run up to Christmas as it emerged that corporate finance heavy hitter Bob Wigley is front runner to become the broadcaster's next chairman.
Wigley, who was one of Merrill Lynch's biggest rainmakers for more than decade, could replace Michael Grade before the end of the year, allowing ITV to restart its search for a new chief executive.
ITV declined to comment on Wigley today, simply saying that its nomination committee was “continuing its search”.
But the company gave a much more upbeat view of advertising revenues than most analysts had been expecting.
It said that while revenues across the group had fallen by 12% in the first nine months of the year, advertising revenues in the final quarter were likely to be flat. That is better than forecast, with October down 3%, November down 1% and December up 4%.
“We are seeing strong advertising from food retailers while cosmetics, toiletries and mobile phones are all buying in ahead of Christmas,” said chief operating officer John Cresswell. “What is also noteworthy is that we have achieved our cost savings without any detriment to programming. Of course there's X Factor, but we have also had very strong audiences for programmes like Doc Martin, TV Burp, Murderland and Benidorm.”
Cresswell added that ITV continues to outperform the rest of the commercial broadcasting sector in terms of its advertising revenues. It is also stretching ITV1's audience lead over BBC1 at peak times.
If, as seems increasingly probable, ITV's ad revenues really have turned the corner, analysts believe that Wigley, 48, would make a powerful chairman to take the business through the upturn.
As the top London-based corporate financier for Merrill Lynch, he oversaw numerous deals, including GUS's £1.9 billion takeover of Argos, Asda's £7 billion purchase by WalMart and Sir Philip Green's succesful £1 billion bid for Arcadia and his abortive £12 billion offer for Marks & Spencer.
Wigley left Merrill following its takeover by Bank of America at the end of 2008.
He is seen as a safe political choice having recently produced reports on education for Gordon Brown and on the City's competitiveness for London Mayor Boris Johnson.
ITV has been struggling to find replacements for Grade. It first tried to recruit fromer Sky boss Tony Ball as its chief executive but had to return to the drawing board when that appointment fell apart.
ITV shares rose 1.2p to 45.6p.
