Channel 4 has reached £1.2bn in total revenues as it shares its 2023 figures. However, the broadcaster has reported a £52 million planned deficit.
In total, revenue was down 10% year-on-year (from £1.14bn in 2022 to £1.02bn in 2023).
It comes after a year in which the broadcaster slashed around 18% of its workforce. Speaking in front of the Culture, Media and Sport Committee in November 2023 chief executive Alex Mahon warned that the broadcaster may need to use its £75 million emergency loan (in the end it did not draw on the facility).
In her executive statement, Mahon also reiterated that there was “significant market correction after the post-Covid boom in TV advertising”, and called it the deepest decline since the 2008-2009 crisis.
The broadcaster has the highest proportion of revenue from digital advertising of any UK broadcaster (at 27% compared with the national average of 10%).
It said the overall year-on-year decline reflected challenges in the TV advertising marketing which required Channel 4 to rephase some of its scheduling and production and slow down commissioning during periods when it was already well-stocked.
“2023 was another year of strong strategic progress as we grew the size of our digital business, delivering market-leading digital revenue diversification and record streaming viewing. Our planned deficit and reduced cash were the intentional results of financing our transformation from linear to digital,” said Channel 4 chief executive Alex Mahon.
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“During this transition, we need to keep buying the different formats and genres people like to watch on linear and streaming. As a result of our investment in this transformation, we are already seeing the upside of prioritising spend on content and digital innovation,” she added.
Digital revenues have increased by 10% to £280 million, accounting for 27% of total revenues. Around £101 million of the revenue heralded from non-advertising avenues whereas the rest of it came from advertising.
The broadcaster invested a total of £663 million into content, with around half of this directed towards content outside of London.
“Alex Mahon and her team have done a tremendous job navigating last year’s incredibly challenging advertising downturn to deliver resilient results and lay the foundations for Channel 4’s ambitious Fast Forward strategy and the success we are seeing in 2024,” said Channel 4 chair Sir Ian Cheshire.
“Channel 4’s unique public service remit and its sustainable commercial model creates immense cultural and economic benefit across the UK and this report, as well as the in-year update, demonstrates its continued long-term sustainability.”
