ITV to restore dividend as ad revenue rises

 
City A.M. Reporter
Broadcaster ITV plans to restore its dividend in July after advertising revenues rose 12 per cent in the first quarter, following a recovery in 2010 which helped the firm to double its earnings.

However the group warned that it remained cautious in terms of the economic outlook for the rest of the year and the impact this would have on advertising markets and noted that comparatives would also become increasingly tough.

"Whilst the recovery in television advertising is clearly very helpful, it also serves to remind us just how volatile this market can be," chief executive Adam Crozier said.

"Although ITV Family advertising revenue is expected to be up 12 per cent in quarter one and eight per cent to 12 per cent in April, the comparatives become increasingly tough as the year proceeds, and without the benefit of the Football World Cup this year."

ITV, home to such shows as Simon Cowell's X Factor and long-running soap Coronation Street, said the overall improvement in trading helped it to post earnings before interest, tax and amortisation of £408m from £202m in 2009.