Michael Grade, the executive chairman of ITV, this morning insisted that the group's turnaround plan is on track, as the commercial broadcaster forecast flat net advertising revenue for the first half of this year.

The group, home to Britain's Got Talent and Coronation Street, expects the whole British television advertising market in the first half of this year to fall by one per cent and insisted it will outperform this.

ITV said that revenues for the first quarter of 2008 had increased by 3 per cent to £492 million compared with £479 million in 2007 and net advertising revenue was up 2 per cent in the first quarter. However, the group said that revenue from its broadcasting operation fell by about 2 per cent to £409 million for the period.

Mr Grade said: "The forecast for the first half shows us outperforming the UK television advertising market - the first time this has happened since 2000".

The news comes as shares in the broadcaster have fallen almost 50 per cent in the past year on amid concerns about the future of the advertising market.

The group has faced further challenges in recent weeks, such as a record £5.7 million fine from Ofcom over the 'abuse' of premium-rate phone lines and the shock resignation of Dawn Airey, the head of its global content division.

ITV's shares have also suffered ahead of an expected large sale of shares after regulators ruled that satellite broadcaster BSkyB should sell down some of its 17.9 per cent stake in the company.

The company last year announced four key growth targets, which included between 3 per cent and 5 per cent compound annual growth over the next three years, maintaining the total share of commercial audience owned by all ITV's channels at 38.5 per cent, doubling the value of its content production business to £1.2 billion and increasing revenue from its digital business to £150 million by 2012.

"Given the wider economic context, the television advertising market has held up relatively well in the year to date. In an uncertain economic environment, ITV continues to deliver advertisers real value and uniquie effectiveness across ITV1 and its digital channels," insisted Mr Grade.

ITV separately announced this morning the acquisition of the Swedish independent producer and programme formats business Silverback for up to £14 million. ITV said that the deal is inkeeping with its strategy to grow its distribution, production and format creation businesses.

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