Shares in ITV PLC (LSE:ITV) were lower after rival Channel 4 reported a £52 million loss, the largest in its 40-year history, due to a slowdown in advertising revenue
Despite the challenging economic environment, C4 continued to invest heavily in programming, which CEO Alex Mahon attributed to supporting the UK’s creative economy.
Channel 4’s top line fell by 10% to just over £1 billion in 2023, down from a £3 million surplus in 2022, marking its first loss in four years.
The broadcaster dipped into its cash reserves, which dropped from £253 million to £96 million and accessed £75 million of emergency debt.
Its focus on digital transformation and streaming helped increase digital revenues by 10%, accounting for 27% of overall income. Despite market challenges, Channel 4 anticipates a smaller loss in 2024.
The news led to a mild sell-off of shares in ITV, which fell 1.2% to 76.87p.