The opening episode of the satirical series picked up 1.4million viewers, but last week's instalment fell to 631,900.
However, Smith has defended the drop in overall numbers, focusing on the significant number of 16 to 34-year-olds watching the show. He also claimed that a large number of people were watching the show on 4oD.
Smith told Broadcast: "With the repeats, VoD [Video on Demand] and live transmission combined, the show is doing about 1.8 million, which is fantastic for a comedy entertainment show.
"10pm on any night of the week is very competitive. We could have done it as a pre-record but it would have been less exciting and spontaneous. If something happens five minutes before we go on, we address it. That freshness is part of the reason why lots of people watch the repeat, and why there is an impressive VoD uplift."
Smith refused to confirm whether he would give the show a second run.