ITV revenue surges as advertising returns

ITV has seen revenues from advertisers surge by 16 per cent over the last three months.

But the company, which has agreed a new three-year deal with The X Factor and Britain's Got Talent, urged caution over the future.

"The television advertising market has continued to recover strongly. However, this does not disguise the significant challenges ITV faces," chief executive Adam Crozier said.

"The economic outlook for 2011 is uncertain and we continue to plan on a cautious basis."

Under Crozier, who joined ITV at the end of April, the broadcaster plans to enter the pay-TV market as part of a plan to generate around half its revenue from more reliable sources than advertising.