ITV has warned it could be forced to renounce its public service broadcaster status as the network announced a first-half profits dive.

Executive chairman Michael Grade has hit out at "a whole host of nanny state regulation" which is hampering its PSB status over rising costs.

His comments came as ITV announced total net advertising revenue (NAR) was flat in the eight months to August compared with a year earlier. September's figure is likely to be down 20 per cent because of a weaker market and the impact of the Rugby World Cup on the figure.

Underlying profits for the half year to June 30 slumped 28 per cent while adjusted pre-tax profits came in at £91 million for the six-month period, compared with £127 million a year ago.

ITV said first-half group sales rose 3 per cent to £1.031 billion thanks to strong performances by its broadcasting, global content and online units.

Mr Grade said: "I think we have a future as a public service broadcaster provided that we can get Ofcom and the Government to realise very, very quickly that we cannot afford to pay more than the licence and the PSB status is worth."

He continued: "Ofcom estimates that to be around £45 million a year. It's presently costing us over £220 million a year. If we can't get quick resolution to that then, obviously, as Ofcom itself outlined in its recent consultation paper, there is an option for ITV to give up its public service status. We don't want to do that."

He added: "It's not a threat, it's a realistic scenario, which Ofcom itself has proposed."

Mr Grade, who insists ITV is already meeting its public service obligations with the more than £1 billion a year invested in UK productions, said a non-PSB ITV would continue to provide regional news - albeit "in a configuration that meets the modern world" - as well as impartial national and international news.

Challenged as to what would be lost, Mr Grade said: "A whole host of nanny state regulation, about where we put advertising minutage, how we have to treat our suppliers... the contracts we enter into with independent producers are controlled by a regulator.

"This is all Alice in Wonderland, this all belongs 20 years ago. It's so out of date."

The broadcaster has already announced £41 million of cost savings through to the end of this year.

The new £35 million round of cost savings reportedly involves job cuts, estimated in some quarters at as much as 10 per cent of the group's 6,000 staff.

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