BROADCASTER ITV is to double the programme budget of ITV2 as part of a major investment in multichannel services.

The television company, created by the merger of Granada and Carlton, will show more sports, US series and movies on ITV2, as well as support the launch of an ITV3 service later this year.

The strategy is part of £36m-a-year of additional multichannel investment that ITV hopes will generate £150m in revenues by 2007.

ITV said that its current trading performance had continued to improve, with net advertising revenues up 4.9 per cent on the same period last year.

Chief executive Charles Allen said the performance showed the benefits of the Carlton and Granada merger, and particularly the creation of one sales system.