ITV announces the sale of Friends Reunited as it reveals a staggering loss for the first half of 2009.

ITV has issued its interim statement for the six months to 30 June 2009, and reported a staggering pre-tax loss of £105 million.

The commercial television station said that net advertising revenues were enduring their worst period on record and ITV had not escaped without being hit. It has reported a 15% drop, compared with a market drop of around 17%.

ITV’s defined pension scheme has plummeted into a deficit with an estimated figure of £528m at the end of June, compared to £178m at the year end. 

On a positive note, ITV said that online revenues were on the up with itv.com reporting a 100% increase to £10m, with unique users averaging 8.7m per month to the site.

It has also made considerable cost savings of around £57m across programming and off-screen, and is on course to deliver at least £155m of total savings over the year. 

Michael Grade, Executive Chairman of ITV, said: “Our financial results for the half year reflect the impact of the unprecedented downturn in television advertising, offset by the comprehensive action we are taking in mitigation.

“We are maintaining our peak audience share across our channel family and are growing our share of television advertising, while delivering our targeted cost-savings.”

The results statement issued a blow to shareholders: “Economic conditions remain uncertain and, in line with the approach taken at the year end, the Board’s view is that it is appropriate to suspend the interim dividend.”

Today (6 August), ITV also issued a statement announcing the sale of Friends Reunited, of which it owned 100%. DC Thompson, a Scottish publisher, has bought the social networking site for £25m – a fraction of the £175m price tag ITV paid for it in 2005.

“Social networking is moving at lightening pace and it’s imperative that providers keep up with the needs of their users”, commented Martin Warner, Co-founder of free business social networking website, Talkbiznow.com.

He continued: “The advent of free sites means that if you are unable to react to member demands and stay ahead of the game, your members will migrate to another site. Whilst it encourages healthy competition, it can also be a brutal place to exist.”

ITV are yet to confirm who will replace Mr Grade as he steps down from his post by the end of 2009.