ITV regains X-factor

ITV share rose sharply on Monday after it turned in better than expected third-quarter earnings and slashed debt.

The company, home to such shows as the "X Factor" and "Coronation Street," said it now expected to be net cash positive at the end of the year after growing revenues by 4% in the first nine months, above consensus.

ITV, which has been improving its onscreen and production divisions in the last year, said it remained cautious for 2012, which had been expected by analysts due to the lack of visibility in advertising bookings.

Downton Abbey and the screening of the rugby world cup helped ITV grow its key net advertising revenues by 1% in the third quarter, against analysts predictions that revenues would be flat.

ITV shares were up 2.5% to 65.25p at 1301GMT.

Overall, revenues from the broadcasting and online division were up 3% to £1.3bn, with revenues from ITV Studios generated by external sales up 9% to £224m

Net debt at the group tumbled to £43m from £188m at the start of the year. Capital expenditure is forecast to be around £50m in 2011 compared with an earlier guidance of £80m.

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