Broadcaster ITV has revealed its IAS 19 defined benefit pension deficit has increased by £303m in quarter three.

In its latest trading update the company revealed that as at 30 September 2016 its deficit stood at £367m, compared to £64m at 30 June 2016 and £176m at 31 December 2015. It said the deficit has increased due to the significant increase in pension liabilities as a result of falling corporate bond yields.

It had a much lower deficit at 30 June but said this was because the falling corporate bond yields were largely offset by substantial gains in asset values as a result of ITV’s significant holdings in longdated UK gilts.

“Since then the credit spread between UK gilts and corporate bond yields has narrowed as corporate bond yields have fallen relatively further. The IAS 19 valuation does not impact the deficit funding contribution, which was agreed following the actuarial valuation,” ITV said.

Based on the last actuarial valuation based on 1 January 2014, which a deficit of £540m was agreed, the company agreed to make deficit funding contributions of £80m a year from 2016. This was a £10m reduction on 2015. The next actuarial valuation is due as at 1st January 2017.

ITV is currently consulting on the closure of its DB schemes, which it said may result in an exceptional cost at the full year. However, unions have said they are “angry” about the planned closure of the scheme.

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