British broadcaster ITV said today it would not be spending extra money on programming in 2007 as it announced trading this year was as bad as had been expected.
ITV, recently the subject of a bid approach, said ITV1 revenues were down 12.5 per cent and that it should deliver £40 million of operational efficiency savings by 2008.
Britain's biggest commercial broadcaster is struggling with a drop in audiences and advertising revenues amid growing competition from digital channels.
It received a boost late last month when it poached the BBC's chairman, Michael Grade, to be its new executive chairman.
This morning, ITV shares were up 0.2 per cent at 109.75 pence.
ITV's troubles led cable firm NTL, whose biggest shareholder is British entrepreneur Richard Branson, to put forwards a bid proposal in November worth £4.7 billion.
News of NTL's approach prompted British pay-TV operator British Sky Broadcasting Group to buy a 17.9 per cent stake in ITV, a move that is being reviewed by regulators.