ITV ready to gamble over new channels

TELEVISION group ITV wants to buy new channels to prove that it can return to growth after several difficult years. Having nailed down cost savings from the merger of Carlton and Granada into ITV, chief executive Charles Allen is ready to go on the offensive against digital and satellite giant BSkyB.

The programming arm of cable firm Telewest, which includes UK Gold and Bravo, may be a tasty target.

ITV will save £10m a year from the relaxation of regional programming laws announced by Ofcom yesterday. It has also raised £250m from the sale of its stake in electronics firm Thomson and other non-core investments.

This can be used to make acquisitions and launch new pay-TV channels. ITV wants to start a new gambling channel, hoping to use celebrities to tempt housewives to have a flutter through their TV sets.

Allen was in a confident mood at the annual brainstorming meeting last week for ITV's 120 top managers. They spent two days at London's lavish Landmark Hotel plotting their future strategy and drinking until 2am.

ITV shares rose 3p to 122p after regulator Ofcom said that it can halve its output of little-watched regional programmes to 1.5 hours a week in England. This means more cash for audience pleasers like I'm A Celebrity, Get Me Out Of Here as it struggles to hang on to advertisers.

Ofcom boss Stephen Carter denied that he was taking pity on the £5bn broadcaster. 'ITV has billions of revenues and last time I looked, a pretty healthy profit line. [Taking pity] is not our job,' he said.

Sir Bob Phillis, boss of Guardian Media Group, and Baroness Usha Prashar are joining ITV as non- executive directors.