Downton Abbey (pictured) and X Factor are features on ITV
Downton Abbey (pictured) and X Factor are features on ITVITV Press Centre

ITV shares tumbled in the market open after the media group revealed a drop in first quarter revenue amid its cost cutting plan.

The ITV stock price fell by nearly 5% to 182.00p after the group said that the phasing of programme delivery- an introduction to new programme scheduling- in 2014 means first quarter revenue is down 4% but it is still set to "deliver good revenue growth over the full year."

"We continue to make progress with our strategy of growing and rebalancing the business in the UK and internationally," said Adam Crozier, CEO at ITV.

"While ITV Family share of viewing has been lower than expected so far this year we have confidence in our strong schedule to come, including the Football World Cup in June.

"ITV Encore - our first pay channel - is on track to launch in June, followed later in the year by ITVBe, our first new Free To Air Channel in almost a decade.

"As always, Studios revenues are impacted by phasing of programme deliveries, however given the level of forward visibility we have in our Studios business, we are confident of delivering good revenue growth over the full year driven by the acquisitions we have made."

Total external revenues rose by 2% to £585m (€719m, $986m), compared to £571m the previous year.

Broadcast & Online revenues also jumped 3% at £480m, from £465m in 2013, driven by 2% growth in NAR as expected and 14% increase in Online, Pay & Interactive.

ITV added that it is on track to deliver £10m cost savings over the full year.