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Granada takes massive ITV Digital hit

Media group Granada has reported pre-tax losses of £169m sterling for the six months to the end of March following the collapse of the loss-making ITV Digital business, its joint venture with Carlton.

The company took a massive exceptional charge of £104m linked to ITV Digital, but says it has made no provision for a £178.5m claim against it and Carlton by English Football League clubs relating to payment for television rights.

Turnover fell by 9% to £713m, hit by a 12% fall in advertising revenue, though Granada says the market improved in May.

Earnings before interest, tax, depreciation and amortisation were slightly higher than analysts' forecasts at £94m, compared with £128m a year earlier.

Granada said operating losses for ITV Digital and ITV Sport channel were almost £100m in the first half.