Channel 4 Posts Record Deficit As Content Chief Ian Katz Snubs Bonus

deadline.com:

Channel 4 posted its biggest deficit of all time last year in what was a chastening financial year, with content boss Ian Katz deciding to reject his bonus.

The Gogglebox network, which at the start of 2023 avoided being sold off by the government, revealed a deficit of £50M ($65M) for full-year 2023, with bosses stressing today at an annual report briefing that it had prioritized content spend over keeping the deficit down.

No Channel 4 deficits in recent years have come close to the £50M, with the previous highest being £27M in 2012. A smaller deficit is expected this year, CEO Alex Mahon and Katz said today, but the second half of 2024 in particular has still been challenging financially due in part to the government’s upcoming fall budget and its impact on consumer confidence. “We chose to prioritize content investment and record a significant content deficit in 2023 as a result,” Mahon said as she introduced the briefing. “The single biggest contribution we can make is what we spend on British IP.” Mahon and Katz stressed that the record deficit came after three consecutive years of big surplus, which totalled almost £180M and can still be used to help with content spend and cashflow.

Channel 4’s £75M revolving credit facility is also used to “manage cash flow throughout the year,” according to new finance boss Lucy Thomas.