ITV broadcaster Granada, which owns Yorkshire Tyne Tees has unveiled plans to cut costs after falling advertising revenues helped send the group into the red.

Granada wants £20m worth of savings from a restructuring of the business after unveiling a downbeat set of interim figures.

With advertising revenues down 5.4 per cent in the six months to March 31, Granada reported pre-tax losses of £69m from continuing businesses.

The cost of developing digital television services, including the group's ONdigital venture with Carlton Communications, added to the fall.

The figures come just a day after it emerged that stars of Granada's flagship soap Coronation Street were in dispute over new contracts.

Proposals include cutting a perk that allows long-running members of the cast to receive extra money for going on holiday.

But Steve Morrison, Granada's chief executive, insisted the new contracts had nothing to do with overall cost cutting.

He said investment in the long-running soap was increasing.

"Salaries are going up, all we are doing is removing some old-fashioned practices," he said.

The company's restructuring will see all free-to-air and pay television operations, including the new ITV Sport Channel, run from a single division.

Production, online and broadband assets will be managed within a separate content business.

Up to 100 jobs are likely to go as a result of the shake-up, Mr Morrison said.

As well as Yorkshire Tyne Tees, Granada's regional TV operations include the LWT, Meridian and Anglia licences, with its production business responsible for programmes such as Emmerdale, Heart- beat and A Touch of Frost.

Charles Allen, executive chairman, said: "Against the backdrop of the current downturn, we have reviewed all our operations and we have begun a major cost reduction programme."

Granada is one of a clutch of media companies to fall victim to a slowdown in advertising spending.