ITV’s defined benefit schemes have recorded an IAS 19 net pension surplus of £86m.

In its interim results for the six months up to 30 June 2018, the television broadcasting company said that the surplus was primarily due to a decrease in the schemes’ gross liabilities, together with deficit funding payments of £47m made in the first half of 2018. At the end of last year its DB schemes had an IAS 19 deficit of £83m.

The company has said that its pension gross liabilities reduced in the main due to an increase in corporate yields. This was further improved by a decrease in market expectations for long-term inflation rates. The surplus includes £42m of gilts, which are held by ITV as security for future unfunded pension payments due to four former Granada executives.

ITV’s 1 January 2017 DB pension scheme actuarial valuation calculated that its combined deficits amounted to £470m.

In the report, ITV said that it would continue to make deficit funding contributions in line with its most recent actuarial valuation in order to eliminate the deficits in each section. It expects to pay deficit funding contributions of around £75m next year.

ITV owns a number of DB schemes that have been closed to new members since 2006 and to future accrual from 2017. In 2016, on acquisition of UTV Limited, the company took over the UTV DB scheme, which remains open to future accrual.

Total ITV revenue increased 8 per cent to £1.8 bn in the first half of the year, with external revenue also up 8 per cent at £1.6bn. Total non-advertising revenue grew 14 per cent to £958m. Total non-advertising now accounts for 52 per cent of total revenue.

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