Rebranded Channel 5 returns to profit despite advertising hit
Broadcaster 5 returned to profit despite its turnover falling by almost £80m during its latest financial year, it has been revealed.
The business, which is owned by Paramount, has posted a pre-tax profit of £30.6m for 2024, new accounts filed with Companies House show.
The total is up from the £159.5m pre-tax loss it reported for 2023.
However, its operating profit fell in the year from £112.4m to £21m while its turnover also declined from £399m to £318m.
The broadcaster rebranded to 5 in March this year and has been owned by Paramount since 2014.
Paramount itself hit the headlines in July when a £5.9bn merger between itself and Skydance Media was approved by the US Federal Communications Commission (FCC).
The deal, which was first announced last year, came just weeks after Paramount Global agreed to pay £13.5m to settle a legal dispute with US President Donald Trump over an interview it broadcast on subsidiary CBS with former Vice-President Kamala Harris.
Skydance is owned by David Ellison, the son of Larry Ellison, who founded US technology giant Oracle.
Competitive advertising market for 5
A statement signed off by the board said: “As with the previous year, the numbers reflect a payment and interest from Channel 5’s sales partner, due to a correction in the partner’s internal reporting relating to the period from 2017 to 2023.”
5 added that an additional payment of £4.5m relating to 2024 was recognised during the year, down from £80.9m in 2023, plus £3.6m in interest, down rom £9.1m.
The broadcaster said the reduction in its turnover reflected “a combination of a challenging linear advertising market and adjustments in programme expenditure to safeguard Channel 5’s position in a competitive environment”.
It added: “2024 marks Channel 5’s fourth consecutive year in operating profit since 2020 when the market was materially impacted by the Covid-19 pandemic.
“Overall, since Paramount Global took over ship of the broadcaster in 2014, Channel 5 has remained in profit for nine out of 10 years.”
On its future, 5 said: “Looking ahead, Channel 5 is positioning itself to fully service audiences wherever they are watching, across streaming or linear TV.
:Securing a new 10-year broadcast licence from the industry regulator Ofcom was a heartening endorsement of the channel’s evolution and Paramount’s investment in UK public service broadcasting over the past decade.”