Channel 4 breakeven 'deliberate'Channel 4 chief executive Andy Duncan Andy Duncan is the name of:
The broadcaster today unveiled an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of £7.8m for the main analogue (electronics) analogue - (US: "analog") A description of a continuously variable signal or a circuit or device designed to handle such signals. The opposite is "discrete" or "digital". network in 2007. In response to the result Duncan said that more money has been ploughed into making programmes as the channel makes its case for some form of extra public funding Public funding is money given from tax revenue or other governmental sources to an individual, organization, or entity. See also
Overall, the Channel 4 group – including digital channels such as E4 that have been growing ad revenues rapidly – returned a pre-tax surplus of £1.6m against a surplus of £21.3m the previous year. Channel 4, which was set up to re-invest advertising revenue into programming and does not have to make a profit, effectively put more money into its content – thereby reducing its surplus after tax from £14.5m in 2006 to £500,000 this year. This led to accusations from journalists today, as Channel 4 released its annual report for 2007, that the broadcaster deliberately reported a large decline in its overall surplus as it enters negotiations with Ofcom and the government to fill a predicted £150m-a-year shortfall in funding. "Revenue went up modestly … within that we managed to earmark earmark taking a piece out of the edge or center of the ear with a punch as an identification mark. The shape of the mark may be registerable under local legislation. substantial investment in programming," Duncan said. "Our profits after tax went down. We're not required to maximise profits but … we did see overall group surplus drop to just above breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations . "That was something we were absolutely aiming for. We thought it was important to maximise creative investment in digital and programming." Speaking afterwards af·ter·ward also af·ter·wards adv. At a later time; subsequently. afterwards or afterward Adverb later [Old English æfterweard] Adv. 1. , Duncan revealed it is possible to make a deliberate move to take Channel 4's finances into the red. He said that, "If we knew now what the settlement [with Ofcom and the government] was we would plan accordingly" and so could potentially take the whole group into the red. However he said that in the absence of an actual settlement it would be foolhardy fool·har·dy adj. fool·har·di·er, fool·har·di·est Unwisely bold or venturesome; rash. See Synonyms at reckless. [Middle English folhardi, from Old French fol hardi : to do so, adding: "Taking a corporation into loss is a big thing, if it's a planned transition." Ad revenue down Channel 4 is hoping to hear by the end of the year if new legislation will be introduced to help close its projected funding gap. However, Duncan warned that in the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile more cuts were on the horizon, both on-screen on·screen or on-screen adj. & adv. 1. As shown on a movie, television, or display screen. 2. Within public view; in public. and off, if the current poor advertising market continues. He said Channel 4's advertising revenue is down around 1% year on year so far in 2008 and could fall further. Duncan said that "from where I sit that looks good" compared with predictions from media agencies of even more of a slump. He said it was too early to judge what the impact of the general economic downturn would be on Channel 4's revenues, but added: "One of our major worries is the advertising market over the next 18 months." Duncan added that the ad revenue decline of 1% year on year, as it stands, would punch a further hole of around £25m in Channel 4's revenues. "We'd have to cut costs, not just in programming. We'd have to look at our overheads, new media, marketing. "Based on revenues for this year we've had to take costs out of the business. That impacts on transmission budgets," Duncan said. Because Channel 4 does not pay full costs of a programme until it is aired it could mean transmission of some films or other expensive programmes will be delayed. The premium-rate telephone scandals which hit broadcasters last year also took around £9m in profit out of C4's financial forecasts. However, both Duncan and chairman Luke Johnson Luke Johnson may refer to:
They said the impact of digital switchover Digital switchover is the name given to the process in which analogue broadcast television in an area is converted to digital television. It is also sometimes referred to as analogue switchoff. has still to be taken into account as Channel 4 is particularly popular on second and third television sets in children's bedrooms, which are often old analogue TVs. · To contact the MediaGuardian news desk email editor@mediaguardian.co.uk or phone 020 7239 9857. For all other inquiries please call the main Guardian switchboard on 020 7278 2332. · If you are writing a comment for publication, please mark clearly "for publication". 
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