Carlton Looks on Bright Side as Earnings Slide

29 May 2002

Carlton Communications – one of the two major shareholders in British commercial television network ITV – posted pre-tax losses of £179.4 million ($261.8m; €282.9m) after a torrid few months.

Suffering a 13% year-on-year drop in ad revenues, Carlton saw EBITDA (earnings before interest, tax, depreciation and amortization) tumble from £74.6m to £43.7m before exceptional items, turnover sink from £539m to £503m and group operating profit slide from £43.5m to £16.8m.

Included in the results is a £99m one-off charge for the closure of failed dTV platform ITV Digital and sports channel ITV Sport.

However, Carlton believes the future is looking brighter, pointing to signs of an advertising recovery in the second half. It also appears unconcerned at the legal action launched by the Football League over an unpaid TV rights contract with ITV Digital. No provision for honouring the debt has been made in its budgeting for the rest of the year.

Data sourced from multiple sources; additional content by WARC staff