ITV to be demoted from FTSE 100

Relegation from the FTSE 100 will be a blow for ITV boss Michael Grade.

Broadcaster ITV and Carphone Warehouse are to be relegated from the FTSE 100 index of the UK's largest publicly listed companies.

Pubs group Enterprise Inns and Ferrexpo, a Ukrainian iron ore miner, will also drop out following the latest quarterly reshuffle.

They will be replaced by miner Fresnillo, software group Autonomy, satellite firm Inmarsat and Stagecoach.

The changes will come into effect from the start of trading on 22 September.

The demotions and promotions are based on falling or rising market value.

Lower advertising revenues

ITV's demotion would be a disappointment for boss Michael Grade, who returned to the broadcaster at the end of 2006 to revive its fortunes.

While ratings have risen, the worsening economy has taken its toll on the group's advertising revenue.

ITV, which had been on the FTSE 100 since 2004, recently said that it expects revenues for the second half of 2008 to be 8% lower than the same period last year.

Carphone Warehouse, which has also been relegated, has been hit by a reduction in broadband business due to the slowdown in the housing market hitting the levels of new customers.

The FTSE 100 components form the basis of many pension and investment funds, so a promotion to the index often boosts a company's share price.

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