* H1 adjusted pretax down 41 percent
* Says will make further cost savings
* Shares down 7 percent (Adds chief executive comments, analyst reaction, shares)
By Paul Sandle
LONDON, Aug 26 (Reuters) - British media products firm Vitec Group posted a 41 percent fall in first-half profit, reflecting "extremely difficult" conditions in the broadcast and entertainment industries, which it expects to last until 2010.
The supplier of camera and lighting equipment on Wednesday reported pretax profit before exceptional items of 10.2 million pounds ($16.7 million) for the six months to end-June.
Revenue of 161 million pounds rose 1 percent due to the weak pound, but was 19 percent lower after stripping out favourable currency movements.
Chief Executive Stephen Bird said the group had been hit by a 35 percent plunge in spending by broadcasters, and there was no upturn forecast until 2010 at the earliest.
"There's been a swift and dramatic decline," he said. "Hopefully, we have reached the bottom -- there will be no major upturn in 2009 but there could be a modest recovery in 2010."
Bird said his primary goal was the cost base, and he had identified 7 million pounds of further savings, taking annualised cost cuts this year to 22 million pounds. Some 300 jobs out of a total 2,000 had been cut, he said.
Its Broadcast Systems division, which supplies camera tripods and robotics, was suffering the most, he said.
British pay-TV operator BSkyB, buoyed by subscription revenue, was one bright spot and was fitting out five new high-definition studios, he said. But it was the exception rather than the rule.
Vitec's shares, which have gained 34 percent since the start of the year, were 7 percent lower at 293 pence at 1023GMT, valuing the group at 125 million pounds.
Altium analyst Steve Medlicott said the results were "solid", but he expected no near-term boost to the shares, and downgraded them to "hold" from "buy" on valuation grounds.
"Vitec should make 2009 numbers due to increased cost savings in the current year," he said. "However, we do not expect to see increases in the underlying levels of demand for Vitec products and services until well into 2010."
The company maintained its interim dividend at 7.4 pence. (Editing by Dan Lalor and Rupert Winchester)
($1=.6115 Pound)