StockMarketWire.com - Television broadcaster ITV said recent restrictions on working practices to limit the Covid-19 outbreak were having a 'significant impact' on its ability to film productions.

The company also said it had seen further deferrals in advertising spend from clients.

ITV said it was 'too early' to quantify the impact on ITV Studios' revenue and profit. The impact, however, would depend on how long the restrictions were in place.

'We had to pause a significant number of productions in the UK and internationally, which we are doing in a systematic manner to ensure that we are well placed to resume production as soon as we are able to and to minimise the costs of disruption,' the company said.

Following further deferrals in advertising spend, ITV said that in a full year, each 1% decline in advertising sales cut group revenue and profit by about £17m, before any mitigation.

But ITV pledged to continue efforts to cut costs, expecting to reduce its programme budget by at least £100m.

'We have also taken steps to reduce discretionary spending by £20m in 2020. This is in addition to the £10m of savings already guided for 2020. Further, we have identified £30m of savings in our capex,' it added.

At 8:04am: [LON:ITV] Itv PLC share price was -2.6p at 60.56p



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