Channel 5, a British network owned by Paramount Skydance, reported a decline in operating profits and sales for the year. The findings were published in the UK’s Companies House, marking the network’s first earnings report since the merger led by David Ellison.
Profits and Revenue Decline
Channel 5’s operating profit was £21 million, showing a significant drop of 81% from £112.4 million in 2023. This decline was heavily influenced by an £80.9 million payment from Sky Media in 2023 due to an underpayment error in ad sales.
Revenue also experienced a downturn, decreasing by 20%. It fell from £399 million to £318 million within the same timeframe. However, when accounting for the Sky Media payment, Channel 5’s situation appeared relatively better. Operating profit for 2024 stood at £12 million, a decrease from £22.7 million the previous year. Yet, revenue only fell by 1%, totaling £314 million.
Sustained Content Investment
Despite the downturn in profits, Channel 5 remained committed to investing in local content. Its spending on content reached a three-year peak at £216.6 million in 2024. This contrasts sharply with competitor Channel 4, which reduced its spending by 3% to £643 million, marking the lowest investment since 2020.
Streaming Performance
Channel 5’s streaming service, now branded as 5, reported impressive growth. Viewership surged by 53% compared to the previous year, making it the fastest-growing streaming platform among public service broadcasters in the UK. One notable title was the documentary “My Wife, My Abuser,” which documented a man’s 20-year experience of abuse.
Competitive Landscape
In the context of the UK broadcasting market, Channel 5’s closest rival, Channel 4, reported a pre-tax deficit of £2 million last year. However, Channel 4’s revenue increased slightly by 1%, amounting to £1.04 billion.
Future Assurance
Ben Frow, Paramount’s UK chief content officer, emphasized Channel 5’s crucial role in the British creative sector. At the Edinburgh TV Festival in August, he shared that he received positive remarks from the new international chief, Kevin MacLellan, about supporting Channel 5’s growth. Frow expressed optimism about future business opportunities.
- Operating Profit 2024: £21 million (down 81% from £112.4 million)
- Total Revenue: £318 million (down 20% from £399 million)
- Content Spend: £216.6 million (highest in three years)
- Streaming Growth: 53% increase in viewership
