ITV, the biggest British commercial television network, said today that its net profits dived by more than a third last year amid a scandal over its premium rate TV phone-in services.
In 2007, net earnings tumbled 37% to £137m sterling, the company said. Pre-tax profits dropped 35% to £188m.
Flagship television channel ITV1 saw its crucial advertising revenues slide 4.4% to £1.22 billion although this was still better than in 2006 when they had plunged 12%.
'I am confident that the business is in better shape going into 2008,' said exeuctive chairrman Michael Grade, who resigned as BBC chairman in 2006 to help turn around ITV's fortunes.
Content is a key part of Grade's plans, having recently announced a series of management changes and earmarked £200m for acquisitions to expand programming and accelerate growth.
Total income fell 4.5% to £2.08 billion last year as the group suffered a £58m drop in revenue from lucrative premium rate services.
Last year, ITV temporarily suspended all premium-rate interactive services after more than a million British viewers were unfairly charged after entering phone-in competitions.
Viewers were charged too much to vote for their favourite singer or group in the 'X Factor' reality-TV show, while callers trying to win a place on 'Who Wants to be a Millionaire' were charged despite not getting through on the phone.
