Financial struggles escalate at the production company behind The Traitors, with estimated losses reaching an astounding £100 million.
All3Media, a global media powerhouse with over 40 production companies across six continents, has reported significant financial losses and decreased revenue for the years 2023 and 2024.
The pre-tax losses for 2024 ballooned to £113.5m, a marked increase from the £27.8m loss reported in 2023. Revenue also took a hit, dropping from £995.1m in 2023 to £895.9m in 2024. This decline was not confined to one region, with UK programme revenue falling from £355.2m to £297m, US revenue decreasing from £352.6m to £314.8m, and revenue in the rest of the world seeing a smaller decrease.
The financial setbacks can be attributed to a combination of factors. Firstly, the challenging television market, with softer demand for content in the UK and US, played a significant role. Secondly, a large impairment of goodwill amounting to £62.5m, a non-cash and one-off accounting reduction triggered by a reallocation of goodwill after the acquisition by RedBird IMI, contributed to the losses. Lastly, a significant net finance cost of £82.3m, which included interest on a shareholder loan, also impacted the financial performance.
In response to these challenges, All3Media has implemented operating cost initiatives across the group, aiming to deliver a full-year impact in 2025. Despite the financial setbacks, the company has a strong pipeline of programs and sees further diversification towards streamers in 2025.
Notably, All3Media was acquired by RedBird IMI, a partnership between New York-based RedBird Capital Partners and Abu Dhabi-backed International Media Investments, in February 2024 for a deal valued at £1.15bn. Jeff Zucker, the chief executive of RedBird IMI, leads the parent company.
While explicit targeted actions by All3Media were not detailed in the results, some related developments in the parent company's portfolio suggest a responsiveness to market conditions. For instance, some subsidiaries owned by BBC Studios such as Voltage TV reported increased turnover and profits, indicating a focus on areas with growth potential within the group.
Looking ahead, All3Media expects growth to return in the US market in the future. Additionally, reports earlier this year suggested that ITV was in talks with RedBird IMI to spin off its production arm into a separate £3bn entity. Furthermore, All3Media is diversifying into social media to align with ongoing demand. It was also reported in July that All3Media's owner is among the possible suitors looking to take over Whisper Group.
In conclusion, All3Media's financial setbacks are primarily due to a weak television production market, large one-off accounting charges, and financing costs. However, the company's strategic adjustments, such as cost-cutting initiatives and diversification into new areas, suggest a resilience in the face of these challenges.
[1] All3Media Annual Report 2024 [2] Broadcast Now, 2024 [3] The Guardian, 2024 [4] Financial Times, 2024
All3Media's significant financial losses and decreased revenue can be attributed to various factors, including a challenging television market, large impairment of goodwill, and a high net finance cost. (taxes, finance)
The company aims to respond to these challenges through operating cost initiatives and diversifying into new areas like streaming and social media. (business)
