5 March 2008

Turnaround plan on track: ITV viewing increased and advertising revenues stabilised in 2007. ITV outperforming the market in 2008.

Financial summary
12 months to 31 December (£m) 2007 2006 Change %
Group revenue 2,082 2,181 (5)
Operating EBITA* 311 375 (17)
Profit before tax 188 288 (35)
Adjusted EPS** 5.0 6.3 (21)
Full year dividend 3.15 3.15 -
* Before exceptional items
** Before exceptional items, amortisation and tax adjustments

Operating summary
- Total viewing of ITV family of channels increased year-on-year for the first time since the early 1990s.
- ITV1 and ITV digital channels outperformed their terrestrial and digital competitors.
- Reviews of CRR and PSB secured and underway.
- ITV’s five year content-led growth strategy and targets announced.
- Senior executive team strengthened.
- Appointment to Board of Dawn Airey and Rupert Howell; Finance Director recruitment underway; Peter Fincham to join as ITV Director of TV.

Segmental highlights
Broadcasting
ITV family
- ITV net advertising revenue (NAR) held at £1,489 million (2006: £1,494 million)
- ITV digital channel NAR up 33% to £209 million (2006: £157 million)
- ITV family viewing share increased to 23.2% (2006: 23.1%)
- Commercial impact volume rose 3.3% and share held at 41.7% (2006: 42.2%)

- Group revenue impacted by reduction in PRS revenues of £58m and reduction in external Global Content revenues of £37m.
- Operating EBITA impacted by increased investment in digital channels; reduction in PRS profits; and anticipated broadband start-up losses.

ITV1
- NAR fell 4% to £1,224 million, vs decline of 12% in 2006 and 10% CRR ratchet
- Viewing share down 2.1%, compared to double digit declines for C4 and five
- Volume of impacts up 1%, with share down 3.3% (2006: down 10.5%)

Global Content
- Integration of all UK and worldwide production and distribution under Dawn Airey
- Senior appointments with Peter Iacono joining as MD ITV Worldwide from Sony; Paul Buccieri joining as CEO Granada America from Fox’s Twentieth Television
- ITV Productions delivered 75% of all commissioned programmes on all UK channels attracting audiences of over 10 million
- Acquisition of 12 Yard building presence in key international game show genre

Online
- itv.com monthly unique users (UUs) reached 6 million following H2 2007 relaunch
- itvlocal monthly UUs reached 0.75 million following roll-out across ITV plc regions
- Friends Reunited revenue increased 36% with strong growth across all core sites

Current trading
• Broadcasting: ITV outperforming the market in revenues and ratings
- Total ITV NAR estimated to be up 1.9% for Q1 with total TV down 0.7%.
- Total TV estimated to be down around 1% for April
- ITV family viewing up year to date at 23.2% (2007: 23.0%) and SOCI held at 41.5% (2007: 41.7%)

• Global Content: strong on-screen performance and international production
- Performance highlights in new schedule: Dancing on Ice, Lewis, Coronation Street, Emmerdale, Ant and Dec’s Saturday Night Takeaway.
- Major commissions secured for networks in US and Germany

• Online: strategic momentum maintained into 2008
- Streaming technology improvements leading to increased video views on itv.com
- Increased Friends Reunited focus on advertising as core site evolves in 2008

Executive Chairman Michael Grade said: “In my first year back at ITV, we put together a growth strategy for the business and strengthened the senior team. The first priority for ITV was to stem the decline. We did more than that, delivering an increase in viewing to the ITV family for the first time in over a decade. For the first time in many years, ITV1 outperformed its competitors and we’ve continued to do so into 2008.

“We are heartened by the positive response of advertisers to the improved on-screen performance and our investment in channels and online. Having stabilised our advertising revenues last year, we’ve been able to increase ITV television advertising revenues nearly 2% year on year for the first quarter of 2008, running well ahead of the total market.

“We have made real progress towards delivering on our 3-5 year growth strategy. We’ve reached agreements to launch Freesat, Kangaroo and an HD ITV service this year. We’ve taken a stake in Mammoth Screen, a controlling position in Jaffe Braunstein Entertainment and acquired 12 Yard. We’ve re-launched itv.com, completed the roll out of itvlocal.com and continued to grow Friends Reunited.

“The Board’s decision to recommend holding the dividend reflects their confidence in the strategy for growth and the team we have in place to deliver it. The Turnaround Plan is on track.”

Notes:
1) Impacts refer to adult impacts. Share of viewing refers to all-time share of all individuals viewing. ITV family includes ITV1, GMTV and ITV digital channels (ITV2/+1, ITV3/+1, ITV, Citv, M&M, GMTV+1, GMTV2). Viewing share data and commercial impact data sourced to BARB/TNS. Year to date figures cited run to 24 February 2008 (and equivalent period in 2007).

2) Net advertising revenue figures based on ITV data and estimates. ITV1 NAR refers to ITV plc share of ITV1 NAR.