Channel 4 Set To Unveil Record Profits

Channel 4 is expected to report annual profits rising as high as £70 million tomorrow, with advertising revenues and turnover hitting record levels.

Profits are predicted to be significantly up on last year’s £45.3 million, while Andy Duncan, Channel 4’s chief executive, is expected to update on the first few months of the year, revealing the company is ahead of the market as a whole.

However, reports suggest Channel 4 management are concerned that, as growth in multi-channel television continues, it will suffer an annual advertising shortfall of £100 million by 2010, as the broadcaster is restricted in its commercial activities by an act of Parliament.

At the end of last year the broadcaster outlined plans to ensure its continued existence in a digital-only television environment, calling on Ofcom to provide it with partial public funding in order to achieve a successful digital switchover (see Channel 4 Outlines Public Funding Proposals To Ofcom).

Channel 4 recently completed a deal with UBC Media, giving the broadcaster a 51% interest in UBC’s national radio station, Oneword, for £1 million, making further progress towards the creation of a Channel 4-branded radio operation (see Oneword Deal Completed With Channel 4).

Last month the broadcaster confirmed that it will launch E4, as well as its timeshifted counterpart, E4+1, on the Freeview platform to coincide with the start of the sixth series of Big Brother at the end of this month. The move will fill the broadcaster’s quota for digital channels on the Freeview platform (seeE4 Set For Freeview Launch Next Month).

The broadcaster has also unveiled plans for a new music channel, E4 Music Zone, announcing that the spin-off station will broadcast from 6am to 2pm daily, resulting in E4-branded content being available to viewers 24 hours a day (seeChannel 4 Tests Interactivity Through Music Offering).

Channel Four: 020 7396 4444 www.channel4.com