ITV shares began to climb this morning after forecasts that advertising revenues may rise for the first time in almost 18 months added to hopes the broadcaster may at last have found a chairman to replace Michael Grade.

In its interim management statement, ITV said that advertising revenues were down just 3 per cent in October, which was better than expected.

The company, which controls more than 40 per cent of total UK TV advertising across its channels, forecast that this month ad revenues would fall just 1 per cent and that they would rise 4 per cent in December, leaving them flat across the fourth quarter. This would leave total revenues for 2009 down 12 per cent on last year.

Shares in ITV rose 7 per cent to 47.6p a share.

John Cresswell, ITV’s chief operating officer, said: “Whilst our visibility is limited, the outlook for the fourth quarter has continued to improve and ITV is continuing to outperform the market. With further cost savings and a strong schedule in 2010, including the World Cup, we are confident that ITV is well-positioned to benefit from any market recovery.”

The statement offered no guidance on the progress of the appointment of a new chairman.

However, last night Bob Wigley, the prominent City financier and a former head of Merrill Lynch, emerged as a leading candidate for the top position. Last month, two leading candidates, Sir Michael Bishop and Sir Crispin Davis said they were not interested in the job.

Mr Cresswell agreed to become interim chief executive but will “leave to seek a fresh challenge” when someone permanent is found.

He said that despite challenging market conditions shows such as X Factor, Doc Martin, The Cube and Benidorm have helped ITV1 to increase its lead over BBC1 in peak time viewing share. ITV1 held a 23.1 per cent share at October 26, ahead of BBC1 at 22.2 per cent.

The statement also reported £1.3 billion in revenue for the 9 months to September 30, a 12 per cent drop on the same period last year. However, revenues in ITV.com increased by 45 per cent to £16 million.

Cost savings are on track with ITV set to deliver £155 million of savings in 2009. The television company also repaid £75 million of debt and confirmed a seven-year bond last month.

ITV studios, which has operations in Los Angeles, Cologne, Stockholm, Sydney, Spain and the UK, reported external revenues of £209 million, compared with £206 million last year.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax