Channel 4 recorded post-tax profits of £38.6m last year after an upturn in the advertising market.
The broadcaster was able to take advantage of better market conditions and invest £50m more than it had budgeted into content across its portfolio.
Channel 4 chief executive David Abraham said: "2010 was a year of transition and Channel 4 has entered 2011 ready for the future.
"We have a new management team in place, we are refreshing our schedules and we are ready to provide content wherever our audiences want to consume it.
"Across 2010 the increase in our revenue allowed us to make extra investment in content and key technological developments to benefit the audience.
"We also increased cash by £49.5m, which will be used to invest in content and key strategic objectives in coming years; this puts us in a stronger position to meet the challenges of the future."
The broadcaster achieved an operating profit of £49.3m, with a contribution from digital channels E4, Film4, More4 and 4Music of £54m.
Operating loss on the core channel was reduced from £59.4m to £7.7m. This resulted in an overall corporation profit after tax of £38.6m, up from £300,000 the previous year.
Advertising revenues grew by £87.5m, comprised of £63.4m for the main channel, £23.2m on the digital channels and £900,000 for TV video on demand.