GMTV Reports First Ever Profits

GMTV has announced its first ever profits as it moves into the fourth year of its franchise. Operating profit of £1m was achieved by an 8% growth in advertising revenue from £74m in 1994 to over £80m in 1995, and a substantial increase in programme sponsorship revenue.

£4m of loan stock was repaid to shareholders: Carlton, Granada, STV, Guardian Media Group and the Walt Disney Company. Over £48m was paid to the Exchequer, but the Channel 4 Transfer payment to GMTV was over £4m.

GMTV’s managing director, Christopher Stoddart said: “Prospects for 1996 are good with above market growth forecast. The narrowness of the profit margin does however show the importance to GMTV of the Channel 4 Transfer. Any reduction in the Transfer payments would tend to be at the expense of programme expenditure.”

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