Granada value hit by ITV slump

Granada's share price has again been hit by poor ITV ad revenues, fuelling speculation that its chief executive, Steve Morrison, is on his way out.

The company's shareholders have put pressure on Morrison to admit his role in the ITV Digital debacle, which so far has only claimed the head of ITV's former chief executive, Stuart Prebble.

Despite Granada and Carlton managing to extricate themselves from the Nationwide League football law suit, Morrison is not expected to survive the current problems from the advertising downturn. Sources have suggested that a decision on Morrison's fate is imminent, although no-one from Granada would comment.

Separately, September has become the fifth consecutive month to experience a growth in TV revenue, although it brings mixed fortunes.

ITV continues to experience dire levels of growth, with predictions that it will at best increase just 1 per cent year on year.

This compares with a total increase in the TV marketplace of around 8 per cent.

Once again Channel 5 is expected to out-perform the market with growth of 28 per cent, while both multi-channel and Channel 4 are also set to do well.

MindShare's director of investment, Nick Theakstone, said: "This isn't great news for ITV. September sets the performance base for the rest of the year so this doesn't bode well for them. What we're after is some good news - ITV needs to persuade agencies that it isn't all doom and gloom."

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus