Channel 4 has revealed the extent to which it was bitten by the advertising downturn last year. Its Annual Report and Financial Statement for 2001 reveals a year on year group loss after tax of £20.6m, despite the fact that group turnover increased by 2% to £731m.
The statement points out that with 85% of revenue coming from TV advertising and sponsorship, the “group remains highly sensitive to the economic health of the advertising sales market.” The current downturn, it says, coincided with a year when spending on 4 Ventures was at its peak.
The report reveals the extent of the damage to advertising revenue- down 5% year on year to £619m. However, it also points out that the group still outperformed the market in this respect, as ITV’s decline was 13.4% and the TV industry as a whole’s 9.8%. As a result, Channel 4’s share of advertising in 2001 was 23.5%, compared to 22% in 2000.
