GB News Reports 38% Increase in Losses As Expansion Rolls Ahead

GB News’ accounts were published on Companies House on Tuesday. (Screengrab via YouTube/GB News)

Operating losses at GB News surged by 38 percent to £42.4 million in the year leading to May 2023, according to a report Tuesday, as the channel aims at becoming the UK’s biggest news network by 2028.

The annual Companies House accounts for GB News Limited revealed an 80 percent year-on-year growth in revenue, which has reached £6.7 million. However, this revenue growth was overshadowed by a substantial 63 percent surge in the cost of sales, reflecting the broadcaster’s aggressive expansion efforts into digital and the notable growth of its workforce, with employee numbers jumping from 175 to 295 in just one year.

GB News is owned by hedge fund manager Sir Paul Marshall and Legatum Ventures Ltd, who have picked up most of the channel’s expenditure, amounting to a deficit totalling £76 million since its inception in 2021.

The channel’s focus on digital reach as a measure of success was highlighted in the document, with its directors emphasising substantial growth in online viewership. They cited a fivefold increase in unique views and a quadrupling of page views on their website and app compared to the previous year.

Additionally, reach on social media platforms such as Facebook and YouTube has tripled, with aggregate subscribers nearing 2.5 million.

However, GB News continues to face challenges in the form of investigations by media watchdog Ofcom, that have resulted in the suspension and firing of some big name hosts. On Monday, after finding the channel guilty of another infringement of the broadcaster’s code, Ofcom raised concerns about the channel’s editorial controls on live content and demanded a meeting with its top executives.

Despite efforts to diversify revenue streams, such as launching a paid membership scheme, it remains to be seen whether it can manage its debts and dwindling cash reserves as it faces down the media regulator.