* Ad revenue in April down 42%, uncertain outlook
* Company has furloughed 800 staff
* Finds another 30 million pounds of savings
(Adds further details, shares, reaction)
By Paul Sandle
LONDON, May 6 (Reuters) - ITV, Britain's biggest
free-to-air commercial broadcaster, said COVID-19 had sent its
advertising revenue down 42% last month, and an uncertain
outlook meant it could not give guidance for the rest of the
year.
The group, which paused the majority of its studio
productions in mid-March and has furloughed around 800 workers,
said it had identified another 30 million pounds ($37.3 million)
of savings on top of action it was already taking, including a
100 million pound cut in the programme budget.
Chief Executive Carolyn McCall said ITV had taken swift and
decisive action to manage and mitigate the impact of COVID-19,
both on its people and its finances.
"We are now very focused on emerging from this crisis in a
strong position, continuing to offer advertisers effective
marketing opportunities and making preparations to restart
productions safely," she said.
The broadcaster had already cut executive pay and cancelled
its 2019 final dividend to help preserve cash.
ITV's shares, which have more than halved since the start of
the year, were trading up 3.2% at 74 pence in early deals.
Analysts at Citi said the drop in April advertising revenue
was less severe than the 50% they had expected.
"With an absence of any major negatives and the severity of
the share price move versus peers this year, we see these
results as positive," they said.
Citi forecasts ITV's advertising revenue for the year will
fall 19%.
ITV said it was working with others across the industry on
measure that would allow productions to restart.
It had to halt filming on its popular soap operas
"Coronation Street" and "Emmerdale" in March, and on Monday it
pulled this summer's run of "Love Island", the standout success
for its ITV 2 channel.
Total external revenue for the three months to 31 March fell
7% to 694 million pounds, it said, as it was hit by working
restrictions at ITV Studios caused by the crisis.
Broadcast revenue for the quarter rose 2% to 500 million
pounds, with ITV total advertising up 2% as originally guided,
it said on Wednesday.
($1 = 0.8041 pounds)
(Editing by Kate Holton and Jan Harvey)