‘Outstandingly Successful’ Year For Channel 4

At the press conference he also revealed that 4 Ventures, a subsidiary owned by Channel Four, made its first ever annual operating profit of £4.1 million, compared to a loss of £17.7 million in 2002. Thompson said: “By any measure, 2003 was an outstandingly successful year for Channel 4.”

However, 2003 proved to be a tough year for advertising and sponsorship; revenues dropped to £643 million from £646 million, but things are looking up for 2004. Thompson added: “2003 was a fairly flat year for advertising, we’re seeing some buoyance in 2004. Revenues for 2004 are looking better but it’s too early to say we’re out of the woods now on advertising.”

Revenues for E4 increased by 34% to £57 million from £42.5 million in the previous year. This should see the channel break even in 2004, a year ahead of schedule.

A cost cutting programme has helped the company lower operating costs to £70 million, largely driven by a reduction in staff numbers. Thompson said of the profits: “There are two factors at work here; good performance from 4 Ventures and secondly the cost savings we made through 2002 and 2003 coming through, [resulting in] a significant improvement in profits on the previous year.”

This week Channel 4 left the BAFTA’s ceremony clutching an armful of awards. The Deal, Touching the Void and Buried all scooped in the drama categories. The much-talked about Wife Swap won the features gong and Channel 4 News – The Fall of Saddam picked up the prestigious News Bafta award.

Looking forward and building on this year’s success at 4 Ventures, Channel 4 is optimistic that each core business will go in to profit in 2004. Over the next four years, a £90 million investment fund has been earmarked to pursue further ventures that will help retain viewers in the multi-channel market, said Thompson.

Early 2005 will see the launch of More4, a free-to-air channel that will be launched on all digital platforms. Thompson enthused that this will focus on the ABC1 demographic and exploit much of the quality and factual programming that Channel 4 commissions.

During the speech, Thompson touched on the digital future of television, saying: “Although I think we are performing very well and have a coherent business strategy, clearly the transfer of more and more households to digital raises questions for Channel 4. We have a strong and valuable public service contribution to make and one that’s not just valuable up to digital switch-over, but beyond that in to the digital age.”

When asked about Channel 4 having to start paying for the broadcasting spectrum it used he said: “We don’t have shareholders and we don’t have dividends to pay these. Profit goes to programme budgets and we can’t extract this money from the programme budgets.”

The inevitable question on the BBC director general’s job was raised and to this Thompson replied: “I’ve heard it said, even though I haven’t applied for the job, I’m waiting for the call. I intend to stay at Channel 4. I have got the job I want so I’m staying here. Yes, I will turn down any approach to the BBC.”