Brighter profits picture for ITV

The surplus had been gained following what was described as the "worst television advertising downturn on record".

ITV had achieved an estimated 7 per cent improvement in advertising revenues in the three months since the year end, with predictions for 15 per cent to 20 per cent growth in April.

The group also announced that incoming boss Adam Crozier – currently Royal Mail chief executive – will start on April 26. He will be paid a salary below the 800,000 offered to his predecessor Michael Grade, but it is thought he will be offered a generous incentive package to hit targets over a five-year revival plan.

ITV has a new management line-up led by a new chairman, former Asda boss Archie Norman, who started in January. He said Mr Crozier's challenge would be to reduce ITV's dependence on a free-to-air model, which has come under threat from digital media and regulation.

"Under Adam Crozier's leadership, ITV will set out on the journey to become a very different business over the next five years," said Mr Norman.

Cutbacks announced last year will remain in place for 2010, although Mr Norman said there is some scope for reinvestment in programming.

ITV said the 2009 pre-tax profit was achieved after it won back a share of the TV advertising market, but revenues overall declined by 9 per cent after a tough first half.

The group – home to shows such as The X Factor and Coronation Street – cut 1,200 jobs to reduce costs. It delivered 169m in savings last year, more than the targeted 155m.

John Cresswell, interim chief executive, said: "Faced with the worst television advertising downturn on record, we took decisive action to improve our operational performance, deliver substantial cost savings and strengthen our balance sheet."

But he added a note of caution, despite the revival in advertising revenue. Results will come up against stronger comparatives in the second half and particularly the fourth quarter of 2010, with further uncertainty ahead of the General Election. Mr Norman said the group believed the new government would cut public spending, limiting the advertising it placed with ITV. He also said he did not see any benefit for ITV from the BBC's plan to cut some operations.

"Over the medium term, we remain cautious – we recognise also that ITV still faces formidable challenges," he added.

An ITV spokesman said there was no regional breakdown for the figures. Last year, around 180 jobs were cut at ITV Yorkshire in Leeds as part of its nationwide drive to make savings. The move included the closure of part of ITV Yorkshire's Kirkstall Road studios.