ITV feels £39m IFRS profit hit

UK broadcaster ITV has said that the switch to IFRS would have hit profits before tax by £39m last year.

In its results for the year ended 31 December 2004, the company said that, had it reported under IFRS, despite earnings before interest, taxation, and amortization (EBITA) remaining ‘virtually unchanged’ at £254m, profits before tax would go down to £168m, £39m less than under UK GAAP. This is largely due to an increase in amortization charges.

IFRS adoption, the company said, would have minimal further impact on EBITA but it would reduce pre-tax profits for the current year.

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