French media confirm the pan-European news channel is short of cash. It’s Egyptian owner has loaned the channel €8.5 million and was forced to promise business continuity for one year.
Earlier this month, employees at the Lyon, France-based channel went on strike over proposals to close Euronews output in Turkish and Italian.
Now new data has emerged confirming the channel is suffering from a severe cash crisis. French magazine Capital reported this week that NBC made significant losses. The US company sold its 25% stake last year for just €3 million, €22 million down from the €25 million originally paid three years earlier. NBC abandoned Euronews in favour of deeper integration with the UK’s Sky News, which is now part of the same media group. Capital also reported the loan from its Egyptian owner Naguib Sawiris has a punitive interest rate of 8% attached to it.
The English version of the channel has already seen cuts in the past 18 months. Parts of a reformed schedule introduced under NBC’s part-ownership have been scrapped. As part of the original reforms, Darren McCaffrey and Tesa Arcilla joined the channel as it moved from out-of-vision to on-screen presentation. But after programmes such as the flagship Raw Politics show were cancelled, its presenters have moved on. Darren McCaffrey has confirmed this week he’s leaving Euronews to join the new GB News channel. Tesa Arcilla is now with Canada’s CBC News after a brief stint with NBC News. Elsewhere, Euronews quietly axed Euronews Radio last year.
RUNNING OUT OF CASH
Euronews Liquidity 2015 v 2019.
The only positive financial trend for the channel is from recent commercial deals with the United Arab Emirates. The UAE is using the channel to promote tourism in the region. This has resulted in the broadcaster’s EBITDA turning positive for the first time in years.