Streaming minutes rose by almost a quarter last year, boosted by hits including The Piano, The Couple Next Door, Russell Brand: In Plain Sight and Big Boys, and this growth has continued into 2024.
This drove a 10pc increase in digital revenues to £280m, accounting for 27pc of overall revenues.
Channel 4 has overhauled its commissioning strategy to focus on programmes that drive streaming growth, resulting in a smaller number of bigger titles.
Ian Katz, chief content officer, said: “We don’t want virtuous but tiny shows. The bullseye we aim for is always purposeful content with mass appeal.”
However, this strategy has put Channel 4 on a collision course with independent production companies that are reliant on the public service broadcaster for commissions.
Bosses said the advertising market was “more stable” in 2024 but warned that high interest rates, low business confidence and the cost-of-living crisis were continuing to take their toll.
While the market grew in the first half of the year, buoyed by the Euro 2024 championship, Channel 4 pointed to ongoing uncertainty ahead of the autumn Budget.
The company expects to post another deficit this year, albeit a smaller one than in 2023.
Earlier this year, Channel 4 announced plans to cut 240 roles – around 18pc of its workforce – and sell its London headquarters in a bid to shore up its balance sheet.
Ms Mahon said the company had completed the “vast majority” of redundancies but refused to rule out further cuts, saying there was a continued focus on managing operating costs.
Channel 4 also recorded a writedown on the expected market value of its offices on Horseferry Road in Westminster, which now stands at £83m.
The channel expects to move from the site in the coming years after relocating more jobs outside London and amid a shift to flexible working.
Ms Mahon saw her pay fall to £993,000 last year, down from £1.5m after a sharp reduction in her bonus. Mr Katz declined to take a bonus, which the company said was in recognition of his close ties to the production sector.