Michael Grade, ITV's chairman, today attempted to reassure investors that the broadcaster's turnaround programme is going according to plan and he said that there was "no evidence" of a slowdown in advertising.

The broadcaster, which has seen its shares fall by more than 22 per cent in the past year as ITV1 has come under increasing pressure, announced in a trading update that net advertising revenue had stabilised this year, as its digital channels had helped offset some of the fall at its flagship channel.

The commercial broadcaster, which saw Mr Grade become executive chairtman at the beginning of this year, said that net advertising revenue at its flagship channel ITV1 is down 4.4 per cent for the year to the end of December 2007. This compared with a 12.4 per cent year-on-year fall in revenues in 2006.

Advertising revenues across the digital channels, which include ITV2, ITV3, ITV4, CITV, GMTV2 and Men & Motors, rose 32 per cent to £209 million in 2007.

While net advertising revenues at all of ITV's channels were down 0.6 per cent, compared with an 8.4 per cent slide in 2006, revenues in the second half of 2007 were flat on the back of events such as the Rugby World Cup. Mr Grade said that net advertising revenues across all of ITV's channels will be up 3.5 per cent in the second half of 2007 and he sees "no evidence of advertiser demand weakening".

"ITV is finishing 2007 strongly. ITV1 net advertising revenue in November was 2 per cent up year-on-year and, with late money still entering the market, estimates for December continue to improve," said Mr Grade, adding that he believes there has been growth across the whole advertising market in the second half of 2007.

ITV also said that it was on track to deliver £40 million of efficiency savings by 2008 and that results of Ofcom's investigation into premium rate services at ITV are expected in the New Year.

"Our focus for 2008 is on implementing the turnaround plan set out in September and maintaining the positive momentum in ITV1's viewing performance," Mr Grade added.

The group added that Dawn Airey, who joined ITV from BSkyB as the managing director of global content, is putting in place a senior team to lead the integrated global content division, which incorporates international and domestic production and distribution.

ITV’s shares were up 0.4p at 86.4p.

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