Channel 4 posted record full-year results on Friday, with CEO Alex Mahon touting them as proof that the British broadcaster was in a strong position.
The news will undoubtedly give the network additional firepower as it fights the UK government’s controversial plan to push for the privatization of Channel 4, of which Mahon, along with many others in the UK TV industry, have been vocal opponents.
“2021 was an outstanding year of creative excellence, exceptional digital growth and record-breaking financial performance, helping Channel 4 more than fulfill its mission and successfully continue its transformation into a digital-first public service broadcaster (PSB),” said Mahon. “These results demonstrate that Channel 4’s business model delivers dynamic growth, revenue diversification and long-term sustainability. Financially, Channel 4 is in the most robust health it has ever been, and our results have laid the foundation for continued investment, financial success and stability.”
In its 2021 annual report, Channel 4 on Friday praised its “strongest financial performance ever”, with revenues breaking the £1bn mark for the first time at £1.2bn ($1.4bn), a 25 per cent increase. compared to 2020. “This is also a significant 18 percent increase over 2019 pre-pandemic revenue,” it said. With “TV advertising continuing to exceed expectations in 2021,” digital advertising has seen a significant increase over the past year. Up 40 percent and accounting for 19 percent of total sales.
Channel 4 also reported a record pre-tax surplus, or profit, of £101 million ($120 million), up 36 percent. That gain came despite Channel 4 spending £671 million on content in 2021, its third highest content spend ever and a 29 per cent increase from 2020.
The broadcaster noted that “the UK’s largest free streaming service, All 4, delivered (a) record-breaking performance with 1.5 billion views” and was “on track to deliver 2 billion by 2025”.
Channel 4 spent £671 million ($794 million) on content in 2021. This is the broadcaster’s third highest expenditure ever and an increase from 2020 (+29%, 2020: £522 million) and pre-pandemic levels.
The broadcaster also praised Friday that it “represents the entire UK”, saying: “Of award-winning dramas, such as It’s a sinup to and including the groundbreaking The Black to Front Projectthe Tokyo 2020 Paralympic Games, the daytime show in Leeds Steph’s packed lunchor Nida Manzoor’s We Are Lady Parts2021 saw Channel 4 portray a wide range of voices from across the UK”
The TV giant concluded: “To ensure Channel 4 authentically represents and reflects its audience in the programs it commissions, Channel 4 made strong strides in 2021 on fair representation. 2021 is ethnically diverse, putting it on track to reach its target of 20 percent by the end of 2022. Crucially, Channel 4 saw the share of its ethnically diverse leaders grow from 9 percent in 2017 to 17 percent in 2021.”
“Channel 4 is a vital national institution and its mission is deeply embedded in everything we make, every day and on every platform,” said Mahon. “It’s about showing things that people might not agree with and that puts perception to the test. It is about celebrating the rich diversity not only of all our communities in the UK, but also their diversity of thoughts and opinions.”