Leeds-based Channel-4 to pay back furlough cash with 'robust financial position' despite pandemic worries

The broadcaster today released its 2019 Annual Report - showing increased spending for regions such as Yorkshire - but also issued an update about how it is dealing with challenges this year.

Channel 4 says it will be able to repay its £1.5m furlough payment to the Government after a "strong creative and digital performance and a better-than-forecast return in the advertising market" helped to deliver a "significantly improved financial position".

Alex Mahon, Channel 4’s Chief Executive, said: “2020 has undoubtedly been an incredibly challenging year, but Channel 4 is showing that we will emerge from this crisis stronger than

ever.

“The pandemic has underlined the vital importance that public service broadcasters like Channel 4 play in supporting, informing, connecting and entertaining our nation’s audiences when they need us most.

"It has also highlighted the brilliance of the UK’s production sector who have not just kept our biggest shows on air but worked with tireless ingenuity to ensure we are serving our viewers with reactive and responsive content.

“We will end this year with a cash surplus and a robust financial position to protect against any further economic instability caused by Covid.

"We will also have a strong base from which to continue the next phase of our transformation, building on the success we have shown in 2019 and 2020 in growing our digital viewing and our digital revenues at pace.”

The 2019 report itself shows that spending increased to £189m in areas outside London last year as Channel 4 set up its headquarters in Leeds and bases in Bristol and Glasgow.

Meanwhile its digital viewing figures on All 4 grew by more than nine per cent over 2019, helping to drive over 18 per cent growth in digital revenues, to £163m.

Digital made up a record 9.5 per ceny of overall viewing and a record 17 per cent of overall corporation revenue, which grew by £10m year-on-year to £985m.

A planned pre-tax deficit of £26m reflected the investment in opening new bases and digital transformation. Investment in originated content rose by more than £3m year-on-year to £492m with £660m total content spend over 2019.

Then in March this year, as the impact of the pandemic took hold in the UK, and with the advertising market down by around half, the broadcaster says it put in place "a swift and prudent financial plan" – reducing the 2020 content budget by £150m, finding £95m in further organisational savings and drawing down on the organisation’s commercial revolving credit facility to give further liquidity.

During the initial lockdown period of March 23 to July 3, Channel 4 grew across platforms, particularly among young viewers.

The 16-34 viewing share grew by more than 20 per cent across Channel 4 and by more than 36 per cent in peak-time, "more than any other terrestrial channel".

Channel 4 News viewing share over lockdown grew by more than 19 per cent and by more than 79 per cent among16-34 viewers – and across the year there has been over half a billion views to its content on social media.

All 4 experienced particularly strong growth, with its views up by more than 54 per cent over the lockdown period – as viewers appreciated the breadth of its content offer, which as the UK’s largest free streaming service includes a huge archive and range of exclusive content, as well as catch-up.