By Variety | Created at 2026-10-09 13:51:39 | Updated at 2026-10-09 15:06:24
2 hours ago
Skydance-owned U.K. network Channel 5 has reported a £24.5 million ($32 million) drop in profits for 2025, citing inward investment in streaming and a tough ad market.
The network recorded a profit of £8.3 million for the year ending Dec. 31, 2025 after tax and interest, compared to £32.8 million the previous year.
In its annual financial report, filed this week at U.K. business registrar Companies House, Channel 5 said it had made an operating loss of £10.9 million in 2025. In 2024 it made a restated operating profit of £24.9 million.
Revenue was down year-on-year from £319 million in 2024 to £292 million in 2025.
“This overall revenue performance reflects the challenging conditions in the U.K. linear advertising market in 2025, alongside increased costs to improve the content offer, product, marketing and monetisation for longer term growth in streaming,” the report states. “That investment has begun to yield results as Channel 5 saw an uplift in streaming advertising income during the year.”
The report notes that in 2024 the higher profit also included a correction payment worth £3.6 million related to a one-off sales partner, which was not repeated last year.
The U.K.’s advertising market has seen a slump over the past couple of years, with knock-on effects on a number of networks and producers, particularly PSBs. Channel 4 announced last month it intends to cut 28% of its work force while ITV is in the process of being acquired by Comcast-owned Sky.
Last year Channel 5 unified its linear and streaming portfolio under the “5” brand. It had previously operated the linear Channel 5 and streaming platform My5. The report says the company saw an “acceleration in its streaming ambitions” following the investment, which included its largest marketing campaign ever as well as upgrades to its streaming infrastructure. According to the report, 5 was the fastest growing PSB streaming service in the U.K. for the second year running, outperforming BBC’s iPlayer and ITVX.
Channel 5 has also been investing in original drama, from “All Creatures Great and Small” to “The Forsytes,” plus boxsets such as “The Good Wife” and “Blue Bloods,” and sport, securing rights for events including a multi-year deal with the NFL, which included U.K. broadcasting rights for the Super Bowl LX, and FIFA Club World Cup. The final between Chelsea F.C. and Paris Saint-Germain F.C was the network’s biggest ever live sports audience in July 2025.
5, a public-service broadcaster, also maintains a daily block of programming aimed at pre-schoolers on its main network, the only PSB to do so and in the report emphasizes its commitment to news and current affairs. In 2025 Channel 5 delivered 317 hours of news programming against a regulatory requirement of 280 hours. In 2025 it also launched “Piers Morgan Uncensored,” a compilation of weekly highlights from Morgan’s YouTube channel.
In response to the challenging ad market, 5 introduced an in-house model for creative brand sponsorships and prioritized targeted advertising for its relaunched linear and streaming portfolio.
The report also notes that owners Skydance have “set out ambitious plans to create a next-generation global media and technology company” and remain “committed to building on 5’s success.”
Skydance CEO David Ellison promised the U.K. government earlier this year that the umbrella company, which owns 5 via its Paramount subsidiary, plans to allocate an additional £80 million to the U.K. network over the next three years, which is earmarked for news, original children’s programming and 20 additional hours of drama per year.
Channel 5 recently saw a change of senior leadership, with Reemah Sakaan joining as president of 5 in early 2026. She took over from Sarah Rose, who moved over to oversee Prince William and Kate Middleton’s philanthropic enterprise The Royal Foundation.
