ITV Cites Brexit 'Uncertainty' For £20m Cuts

ITV (LSE: ITV.L - news) has blamed "economic uncertainty" following the UK's vote to leave the EU for its decision to implement £20m in cost reductions.

The broadcaster's chief executive Adam Crozier said: "Against a backdrop of wider economic uncertainty following the EU referendum we have put in place a robust plan to allow us to meet the opportunities and challenges ahead.

"As part of this we are targeting a £25m reduction in overheads for 2017."

It gave no further details in its half-year results but predicted double-digit profit and revenue growth for its full-year, despite looming pressure on net advertising revenues.

ITV confirmed a 26% increase in its dividend to 2.4p-per-share - all contributing to an 8% rise in its share price in morning London trade.

Dafydd Davies, partner at Charles Hanover Investments, said: "There's been a lot of negativity priced in to the more (UK) domestically-focused companies, so we like what we're seeing this morning with ITV."

During the six months to 30 June, ITV said total external revenue rose 11% to £1.5bn - with net advertising revenue flat. Pre (Shanghai: 600048.SS - news) -tax profits rose 9% to £425m.

Mr Crozier added: "Our strategy of strengthening and rebalancing the business is clearly working and remains the right one for ITV.

"We have a strong balance sheet and the capacity to continue to invest behind our strategy, while at the same time delivering returns to our shareholders (Other OTC: UBGXF - news) ."