Carlton Communications has posted a big first-half loss due to the closure of its pay TV joint venture, ITV Digital, and a severe downturn in advertising.
Carlton, a major stakeholder in Britain's largest commercial TV network, ITV, said today like-for-like advertising revenue fell 13 per cent in the first half, but that it was seeing signs of a recovery in demand in the second half.
The company took an exceptional charge of £99 million for the closure of ITV Digital and ITV Sport Channel, its joint venture with Granada which collapsed last month.
ITV Digital, which held the TV broadcasting rights for the three football divisions below England's elite premier league, went into administration in late March after failing to renegotiate a deal with the league.
Loss before tax after exceptionals and goodwill amortisation was £179.4 million for the six months ended March, after a loss of £277.3 million a year earlier.
Earnings before interest, tax, depreciation and amortisation were £44 million, versus £75 million a year earlier.
Shares in Carlton, which has lost a third of its value in the past year, were up 2.3 per cent at 265p in early trade.