Newly formed commercial broadcaster ITV plc has said it is on target to achieve cost cuts of £100m ($183m) by 2005.
ITV plc is Britain's biggest commercial broadcaster
The company, created from the merger of Granada and Carlton, said it saw signs that the domestic advertising market was stabilising.
Pre-tax profits before amortisation for the 12 months to 31 December would have
been £222m had the company been fully merged during the period, ITV said.
Advertising revenue fell 2% last year, reflecting ITV's lower viewing share.
However, Britain's biggest commercial broadcaster said it expected advertising revenue to increase by £4m in the three months to 31 March.
Advertising revenue at its flagship ITV1 station was up slightly for the quarter, and was set to grow "closer to the overall market growth" in 2004, ITV said.