Channel 4 has confirmed that it is set to report a profit for 2002 following a wave of job losses and stringent cost-cutting across the network.
According to the Channel, the turn-around is due to a reduction in losses at its commercial arm, 4 Ventures, alongside a 4.5% boost in advertising revenues driven by record ratings during peak times.
Channel 4 forecasts that it will gain a record 9.6% share of peak-time viewing in 2002, against 9.3% in 2001. It also sees a strong delivery in younger and upmarket audiences driving its ad revenues to £632 million for the year, a 4.5% increase on 2001 ad revenues, which stood at £28 million.
4 Ventures, which recently suffered a cut-back of 45 jobs, is on target to half its losses by the end of 2002, from the £60 million deficit recorded in 2001. Digital entertainment channel, E4, is also significantly ahead of budget.
Channel 4 estimates that the closure of FilmFour Ltd, will involve a loss of about £28 million over the course of 2002, reflecting the write down of the value of investments in a number of film projects and costs incurred in closing the business. On a brighter note, the Channel confirmed it is to establish an in-house film division with an annual production budget of just £10 million.
