BROADCASTER ITV posted a 60 per cent hike in first-half profits to £205m, despite falling advertising revenues at its flagship ITV1 channel.

The group, which produces shows such as Coronation Street and I'm a Celebrity...Get Me Out Of Here!, said advertising revenues at ITV1 fell by 3.5 per cent - a sharper decline than some experts had predicted.

Digital channels helped boost the figures and contributed to overall advertising revenues lifting 3.4 per cent, with recent stronger growth meaning this figure should rise to 4.3 per cent in the third quarter.

In addition to its main ITV terrestrial channel, the company also owns 75 per cent of the GMTV breakfast channel and has a trio of digital channels in ITV2, ITV3 and the ITV News Channel.

The "significant" profits hike followed a £135m reduction in the licence fee ITV pays the Government, and a nine per cent hike in overall revenues to £1.04bn in the six months to June 30.

ITV, which was created by a merger of Granada and Carlton last year, also announced that it was paying a £325m lump sum to help plug its pension fund deficit.

Like many major UK companies, factors, such as weaker stock market returns and increased life expectancy, have left ITV with a major shortfall in its pension schemes.

It said this "substantial injection of funds" would allow its pension schemes to move towards being fully funded over an "appropriate" period of time.

The company said the move by viewers over to digital television was affecting ITV1, as fewer people tuned in to terrestrial channels. It said this effect should reduce as digital viewing approaches saturation.