Channel 4 says it boosted its investment in original UK content by £15 million (€17.6m) last year but the broadcaster posted an operating loss of £29 million. C4 had previously revealed it was planning to make the loss based on a record investment in UK content of £434 million, part of a 3 per cent year-on-year increase in total content budget to £608 million according to its Annual Report for 2012.
Chief Executive David Abraham indicating that C4 is planning to break even in 2014 through careful financial management. Chairman Lord Burns said there were no concerns about the overall financial loss, which follows the £41 million operating profit the broadcaster made in 2011.
“Knowing that we aim to operate the business to break-even over the long term, the Board is comfortable with the planned deficit for 2012 and the strategy of continuing to deploy our cash surplus during 2013 to further invest in innovation,” commented Burns.
Revenue over 2012 was down from £941 million to £925 million, buy C4’s sales house exceeded its £1 billion target which includes its deals with UKTV and Box TV.