Channel 4’s bosses accepted hundreds of thousands in bonus payments last year, despite the broadcaster suffering its steepest fall in revenues in its 41-year history.

The state-owned, commercially funded broadcaster reported a 10% year-on-year fall in total revenues to £1.02bn last year, down £120m compared with 2022, the steepest percentage fall in income in decades.

While bosses enjoyed bonus awards, the Guardian revealed in January that as a result of the poor performance in 2023 Channel 4 was moving to cut staff numbers by 240, the biggest round of layoffs in at least 15 years.

Channel 4’s latest annual report, published on Tuesday, showed that the corporation’s top executives – the chief executive, Alex Mahon, the chief operating officer, Jonathan Allan, and the chief content officer, Ian Katz – took home £2.15m in pay and bonuses last year.

This included Mahon and Allan accepting £375,000 in bonuses, despite the poor performance of Channel 4, while Katz declined to accept an award of more than £100,000.

Katz is responsible for the corporation’s content commissioning budget, which was cut by £50m last year to £663m as part of a cost-cutting strategy. This severely financially hit hundreds of small independent TV producers who work with Channel 4.

On Tuesday, Mahon said the financial impact on TV producers was actually worse as Channel 4 had initially planned to spend more than the £713m it had in 2022, when the market was experiencing a significant post-Covid boom.

Asked about why two of the top Channel 4 executives accepted performance bonuses despite the tough year for the broadcaster and its staff, Mahon said: “Executive compensation [last year] was the lowest level since 2011, down 35% year on year,” she said. “Ian [Katz] declined to take an executive bonus because he feels close to the indie community. For him it was an important decision.

“We [Mahon and Allan] took significantly reduced bonuses in line with [Channel 4’s] key performance indicators and how the remuneration committee decided to award it.”

In 2022, a record year for Channel 4, Mahon took home almost £1.5m – the most in the broadcaster’s 41-year history, including a bonus of £594,000. Last year, Mahon received a salary of £619,000 and a bonus of £247,000, and her total package was £993,000, including benefits.

Separately, last year Channel 4’s top executives agreed to “indefinitely defer” a planned retention bonus – worth hundreds of thousands of pounds – after a backlash from struggling TV producers hit by the broadcaster’s cuts to programme-making.

The loyalty payment was meant to be in recognition of their commitment during the government’s aborted plans to privatise the broadcaster.

On Tuesday, it emerged that Channel 4’s remuneration committee had agreed to pay this retention bonus to the top executives in July, after a stabilisation in the ad market.

Those payments, totalling £391,000 for Mahon, Allan and Katz, were accounted for in Channel 4’s 2022 annual report and are separate to bonus linked to performance.

The broadcaster’s advertising revenue, on which it still relies for 80% of total income, fell by 9.6% from £1.25bn to £1.14bn in 2023, the worst proportionate slump since the advertising recession of 2009.

Total staff numbers grew from 1,197 in 2022 to 1,351 in 2023, driving an increase in total staff costs from £108m to £123m year on year.

Overall, Channel 4 reported a deficit of £52m for 2023, after three years of financial surpluses totalling £178m.

“We had three years of surpluses,” Mahon said. “The idea of our model is that we can then use that for ‘down’ years to keep investing. It is now important for us to use those surpluses to diversify the business.”

Asked if Channel 4 would consider turning to the government for support, Mahon said: “We’re not looking for government to do anything, thanks very much. We are always open to ideas.”

Digital revenues increased by 10% to £280m last year, accounting for just over a quarter of total revenues, and are forecast to reach 30% in 2024 – a year ahead of its targets.

However, traditional linear TV advertising fell by 16%, or £124m, from £766m to £642m between 2022 and 2023.

Separately, Channel 4 has signed up Boris Johnson and Stormy Daniels, the adult film star at the centre of a “hush money” trial over her affair with Donald Trump, as part of plans to offer all-night coverage of the US presidential election for the first time in 32 years.

Coverage will be fronted by the Channel 4 News anchor Krishnan Guru-Murthy and Emily Maitlis, the former BBC news presenter who now co-hosts the News Agents podcast, while a deal with CNN will feature the sharing of guests, reporters, analysts, graphics and data.

A HUGELY popular Netflix drama is returning to screens early in a shock shake-up.

The romantic drama premiered in 2019 and has aired five series to date.

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According to Deadline, Virgin River series six will be premiering on December 19, with all ten episodes available that day.

Viewers will be happy to know the show’s return is slightly ahead of schedule.

In fact, its absence from the streamer’s 2024 slate seemingly suggested a 2025 return.

The premise follows Mel Monroe (Alexandra Breckenridge), who moves to Virgin River hoping to start afresh as a nurse practitioner and midwife.

She came to the remote California town from Los Angeles, having left painful memories behind in the city.

Upon arriving, Mel meets Jack Sheridan (Martin Henderson), a bar owner and ex-US Marine suffering from post traumatic stress disorder (PTSD).

It comes as a newcomer joining Virgin River in series six has already been announced.

Callum Kerr has landed the role of a younger Everett Reid, Mel’s father and will therefore appear through flashbacks.

The character’s older counterpart is played by actor John Allen Nelson.

In season 5, Mel discovered and met her birth father.

Although fans will now be learning how Everett met Mel’s mother, Sarah (Jessica Rothe).

Meanwhile, even some of the show’s most ardent fans might be surprised to learn about its filming location.

While the story takes place in a small California town, in reality filming doesn’t take place in the United States.

The primary location is actually British Columbia, Canada.

Author Robyn Carr previously described Virgin River to Entertainment Weekly as “the perfect small town.”

She said: “People always write and say, ‘Where is it? I want to go there,’ and I have to remind them that it only exists in our hearts and minds.”

“But to further that thought, we can have that sense of community in our own neighbourhood or school or church group or community centre or library association.

“All we have to do is try to create it.”

Virgin River is available to watch on Netflix.

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Meghan Markle’s former Suits co-stars have extended an invitation to their former colleague, to appear on their new podcast in which they rewatch the show.

Before the 43-year-old married Prince Harry and became the Duchess of Sussex, she was known for her role as paralegal Rachel Zane on the legal drama.

Last year the popular series made its debut on Netflix, and gained a new onslaught of fans along with a record 26.5 billion minutes watched in just eight weeks.

Markle starred on the show for seven seasons, before her exit shortly after her engagement announcement. Her final episode saw her character finally tie the knot with Mike Ross, played by Patrick J Adams.

Adams and Sarah Rafferty (who played Donna Paulsen on the series) will rewatch the show for the first time on Sirius XM’s Sidebar: A Suits Watch Podcast. They expect to recap episodes and share their personal experiences from filming the series.

They have also revealed they will interview fell cast members including Gina Torres who played Jessica Pearson and the programme’s showrunner Aaron Korsh.

“Everybody’s invited, and everybody has been so supportive,” Rafferty told Entertainment Weekly when asked if the Duchess of Sussex has been called in as a guest.

“It’s amazing. I’ve just been texting one of our directors, Mike Smith, Rachael Harris had some comments on our Instagram Live this morning, cannot wait for Sheila Sazs to be introduced into the show. I can’t wait to talk to Max Beesley and all the British actors that we had.”

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Rafferty said she is most excited about the prospect of bringing on voices from behind the scenes of the show, including wardrobe, set design, and more.

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“Everybody’s a storyteller from a different angle, and it takes so many people to make a show,” she said. “I think that that’s really fascinating. There’s so many conversations to be had, like, ‘How did you choose that song?’ All that stuff.”

Markle reacted to the renewed love for the programme during a red carpet interview at Variety’s Power of Women event in November last year.

“Is that right?” Markle asked in amazement at the “wild” figure, which had reached 45 billion minutes at the time. “But who’s counting?” she quipped.

The Duchess admitted that she had “no idea” what was causing the show’s recent uptick in popularity.

“It was great to work on, such a great cast and crew. We had such a fun time. I was on it for seven seasons – so quite a bit,” she said.