Telegraph.co.uk

ITV, Britain's biggest commercial broadcaster, has reported an almost 30pc drop in pre-tax profits and announced plans to cut costs further by the end of the year as the advertising market suffers.

Michael Grade, ITV's executive chairman, said: 'We cannot control the economic environment in which we operate. As a result of the recent slowdown in the television advertising market, the board has taken some tough decisions.'

Pre-tax profits fell to £91m for the first six months of the year from £127m in the same period in 2007, as revenues generated by the company remained little changed at £1.03bn.

ITV, whose shares include 'Britain's Got Talent' and 'X Factor', has struggled to attract viewers and advertisers in recent years.

Mr Grade, who was recruited from the BBC in late 2006, added that the group would be cutting its revenue targets for both ITV and ITV.com.

Given the weakening UK economy, ITV is reducing the level of its interim dividend to 0.675p and will make a decision on the value of the final dividend later in the year.