Channel 4 has reported a record deficit of £52 million for 2023 but has ruled out turning to the Government for assistance.
The broadcaster’s annual report published on Wednesday said it had ambitious plans at the beginning of the year, but challenges due to inflation and high interest rates impacted business confidence and investment in TV advertising.
Its expenditure over the year included a £663 million investment in content, with £520 million spent on original content.
At a press briefing on Wednesday, chief executive Alex Mahon said: “We chose to prioritise investment in content and recorded a significant deficit in 2023 as a result.
“We did it knowing that the single biggest contribution we can make to the financial health of the UK creative economy is what we spend on British IP and in such a tough year, that was more important than ever.”
She added: “There was never a deficit as high as that. And as we say, we expect it to be lower this year. So in that sense, it’s a record.
“But I would remind you of the years of record surpluses a couple of years before that.”
The deficit comes after the broadcaster recorded surpluses in 2020 of £74 million, 2021 of £101 million and £20 million in 2022.
It also states it has net cash reserves of £96 million.
At the media briefing, chief operating officer Jonathan Allan said: “Our unique not-for-profit model allows us to take this longer-term view and plan to break even over the medium-term.
“Indeed, over the last 12 years, we’ve recorded six surpluses and six deficits.”
It comes after its privatisation battle with the Government came to an end last year when former culture secretary Michelle Donelan confirmed plans to sell off the broadcaster had been scrapped and said Channel 4 would now be able to make and own some of its own content.
Asked if they would consider turning to Government for support, Ms Mahon: “We’re not looking for Government to do anything, thanks very much. We are always open to ideas.
“There’s three years of surpluses … that’s £178 million surpluses in those three years.
“The idea of the model is then you can use that for the down years and keep investing.”