Granada scores ahead of World Cup

ITV's largest broadcaster, Granada, said it had seen a sudden surge in demand for advertising in May ahead of the football World Cup. But it cautioned investors against reading too much into the performance.

First-half advertising in the six months to March had fallen by 12% on last year and April was forecast to drop by 13% because Easter was so early, the group said. But the outlook for May was a rise of 9% on the same month last year.

Granada said the rise should not be extrapolated through the rest of the year. 'While this is positive it may reflect a combination of a low comparator last year and advertisers investing in advance of the World Cup in June, as happened in the run-up to the two previous competitions. We continue to have very limited forward visibility.'

Granada was still focusing on creating a single ITV, through a merger with Carlton Communications, when legislation and regultaion permitted. It said it had identified more than £50m of savings from making a single ITV. In the meantime, it was cutting its own costs, which should save £60m in 2003.

Granada shares slipped 1 3/4p to 142 1/2p on the annual meeting statement but Carlton rose 1 1/2p to 266p.