News channel continues to be deep in the red, despite increase in turnover. Meanwhile a recent victory in the courts could backfire.
- GB News’ net liabilities of £109 million mean broadcaster remains reliant on investors
- Turnover boosted by £9 million a year
- But could face tougher restrictions on its presenters.
GB News has posted further losses in its latest financial accounts, running up to the end of May 2024.
Its financial figures highlight the difficulty in making a profit out of news, with other major news broadcasters also struggling to breakeven.
GB News’ loss for the year, after taxation, amounted to £33,419,812. This was down from the £42 million it burnt through in 2023, but higher than the £30 million loss recorded in 2022.
Net Liabilities ballooned from £82.4 million in 2023 to £109 million in 2024.
In its latest filings, GB News confirmed it would continue to rely on its parent company, All Perspectives Limited, to fill the channel’s financial black hole.
All Perspectives Limited is in turned backed by hedge fund manager Sir Paul Marshall and United Arab Emirates-based investment firm Legatum. As a result, the channel isn’t facing the same shareholder-led pressures to cut costs as most commercial rivals, who are facing restructuring or cuts. CNN owner Warner Bros Discovery, who held a minority share in GB News sold their share at a loss in 2022. All Perspectives Limited’s latest financial report is due to be published in the coming days.
Ongoing battle with Ofcom could backfire
The channel has been hit by Ofcom penalties and found in breach of the broadcasting code on multiple occasions. But GB News recently had a rare victory over the broadcast regulator. Last week, a judicial review found two of Ofcom’s rulings over Jacob Rees-Mogg’s show on the channel as ‘unlawful’.
The channel said the ruling was a victory for ‘free speech’. The case revolved around the ongoing controversy over GB News’ use of serving politicians as presenters. It’s exploited a loophole in broadcast rules allowing politicians to present current affairs shows, but not news bulletins. Critics have accused the channel of blurring the lines between news and current affairs. Other Ofcom rulings have not been overturned.
Rule changes coming?
In response to the verdict, Ofcom could now tighten the rules for all broadcasters regarding politicians as presenters. It said it would now “review and consult on proposed changes to the Broadcasting Code to restrict politicians from presenting news in any type of programme to ensure this is clear for all broadcasters.”
Although GB News has fewer serving politicians as presenters following the 2024 General Election, any change could backfire on GB News’ ongoing use of serving politicians as presenters of news-based programming. The channel is expected to launch a robust defence against any such changes.
By: Marc Thornham | Image: GB News