ITV’s net defined benefit pension deficit has risen by £15m in the six months to 30 June 2017, it has revealed.

Its half-year results, published today, revealed the combined deficit for its DB schemes now stands at £343m, compared to £328m at 31 December 2016. ITV said the increase was primarily as a result of losses in asset values, along with the increase in the gross liability offset by deficit funding payments of £47m made in the period.

It said the gross liability increased primarily due to a decline in the discount rate from 2.6 per cent at 31 December 2016 to 2.5 per cent at 30 June 2017 caused by declining AA corporate bond yields. This was partially offset by a 0.1 per cent decrease in the market expectation of long-term inflation rates.

The net pension deficit includes £39m of gilts, which are held by the Group as security for future unfunded pension payments of four former Granada executives, the liabilities of which are included in its pension obligations. On an IAS 19 accounting basis the scheme reported a deficit of £382m at 30 June 2017, compared to £367m at 31 December 2016. At 30 June, it reported liabilities of £4,199m and assets of £3,817m.

ITV has a number of DB schemes which have been closed to new members since 2006 and closed to future accrual since 2017, for which a curtailment loss was recognised in 2016 in relation to the closure. In 2016 on acquisition of UTV Limited, ITV took over the UTV DB scheme.

The last actuarial valuation was undertaken in 2014. On the basis adopted by the trustee, the combined deficits as at 1 January 2014 amounted to £540m and is estimated to be at a broadly similar level today. The trustee is in the process of undertaking a full actuarial valuation of all sections of the scheme as at 1 January 2017 which ITV expects to agree in late 2017 or early 2018. ITV currently makes annual deficit funding contributions of £80m with the payments made evenly throughout the year.

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