Granada forecasts 10% ad slump

Coronation Street: part of the Granada stable

Media giant Granada has forecast a 10% slump in advertising revenues, heightening fears over takings at the ITV television network.

Granada, one of the ITV's main backers, said advertising takings at its broadcasting operations fell 5.4% between October and March,

And overall advertising revenues will fall 10.6% in the nine months to June, the firm said.

The firm said it is accelerating a restructuring, which will save an estimated £60m a year, in an effort to make it "more efficient and effective".

But it hoped that ITV's status as a regionally-organised operation would help it buck the downward trend in the advertising market.

The announcement follows a report on Tuesday that income to ITV had dropped by up to 25%.

More soon.