Channel 4 Reveals Ad Downturn Damage

Channel 4 has revealed the extent to which it was bitten by the advertising downturn last year, as its Annual Report and Financial Statement for 2001 reveals a year on year group loss after tax of £20.6m. The loss came 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.

Channel Four: 020 7396 4444 www.channel4.com

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