BARCELONA (Reuters) - British broadcaster ITV (LON:ITV) reported a 5 percent drop in adjusted full-year earnings, reflecting the tough advertising environment facing new chief executive Carolyn McCall.
ITV, Britain's biggest free-to-air commercial network, reported core earnings of 842 million pounds on Wednesday, with a drop in ad revenue partly offset by underlying growth in its studios content production business.
McCall, who joined ITV from airline easyJet (LON:EZJ) last month, said the company's operational performance in 2017 in a challenging environment was strong, and its viewing performance and studio gave it a solid foundation to build on.
"We have had a great start to 2018," she said.
"On-screen we have grown our viewing share and volume and online we have continued to deliver double digit growth in viewing."
She said she expected net advertising revenue to be positive in the first half - up 1 percent in the first quarter and boosted by football in the second.
The World Cup, which ITV shares with the BBC, starts in June.
The forecast of growth in net advertising revenue comes after a fall of 5 percent in 2017, despite ITV growing its share of viewing for all its channels for the second year in a row.
McCall said she would spend more on sports and drama over the next two years, as it creates, owns and distributes more of its own content.