ITV predicts rise in ad revenue

December to be up by 4% year on year

By STEVE CLARKE

ITV Studios experienced a revenue boost thanks to offshore sales of show formats like 'I'm a Celebrity ... Get Me Out of Here!'

LONDON -- Battling U.K. terrestrial web ITV has glimpsed the light at the end of the tunnel as it forecast a rise in advertising revenue for the first time in nearly two years.

In interim results unveiled Thursday, ITV said it expected ad revenues for December to be up by 4% year on year. Ad coin is likely to flatline for the final quarter of 2009 as a whole, with revenues for the whole year expected to be down 11% to £1.3 billion ($2.14 billion).

Nevertheless, ITV said it would outperform the market. October's revenues are expected to fall by 3%, with November dipping 1%.

"ITV is continuing to deliver a strong operational performance in challenging market conditions," said ITV chief operating officer John Cresswell.

"Both ITV Studios and ITV.com are delivering revenue growth," he added. "With further cost savings and a strong schedule in 2010, including the World Cup, we are confident that ITV is well positioned to benefit from any market recovery."

ITV's production and distribution arm, ITV Studios, saw revenues increase by 11% in the nine months to September — up from $342 million to $380 million.

Rev rise was due in part to the sale of formats like "I'm a Celebrity … Get Me Out of Here!" to the U.S. and India.

Shares in ITV jumped 9.9% to $67.12 on the London stock exchange.

ITV's production and distribution arm, ITV Studios, grew revenues by 11% in the nine months to September -- up from £206 million ($342 million) to £229 million ($380 million).

This was due in part to the sale of formats like "I'm a Celebrity...Get Me Out of Here!" to the U.S. and India.