Carlton boss warns on ad sales slip

CARLTON Communications chairman Michael Green said the ITV broadcaster expects advertising revenues to be about 12% lower for the first five months of its financial year. However, he told shareholders at the annual meeting that the soccer World Cup in June would 'stimulate renewed interest among leading advertisers'.

Green also suggested that merger talks, halted on Wednesday, with rival broadcaster Granada were not dead. He said: 'Our objective, as always, was to make Carlton and ITV stronger and more competitive. We will continue to work together with our partners in ITV to deliver value to our customers and our shareholders.'

Although Green said the advertising market 'remains weak and we are unable to predict with certainty the timing of the resumption of growth', he added that when business confidence returns 'new product launches will favour ITV1'.

Carlton said ITV2 had quadrupled its audience share since it was launched on Sky's satellite digital service in November. Discussions with the BBC and other broadcasters over free-to-air digital terrestrial broadcasting (ITV Digital) were continuing. Green promised that there would be continued reductions in costs in the year ahead.