Channel 5 pays out £215m to US owner Paramount

Channel 5's US parent company Paramount has extracted £215m from the British broadcaster even as it suffered a sharp drop in profits. The payout, which is amongthe largest in the channel's history, was taken from retained earnings in Paramount's first year under the leadership of David Ellison, the son of Oracle tycoon Larry Ellison. It came despite Channel 5's pre-tax profits slumping by two-thirds to £11.9m, while revenues fell 8pc to £292m, according to newly filed accounts. The All Creatures Great and Small broadcaster blamed the decline on "challenging" conditions in the advertising market as brands continued to divert their spending away from traditional TV.