PBS made pre-tax losses of €3.5 million in two and a half years, the National Audit Office reported to Parliament this evening.

A report submitted to the House said that €954,285 and €1,378,912 losses were incurred in the years ending in September of 2013 and 2014 and according to the latest management accounts, up to 31 March 2015, the loss had already reached €1,164,858 for a total of €3,498,055.

The overall deficit of €481,899 incurred on the organisation of Junior Eurovision Song Contest and the Malta Eurovision Song Contest, contributed further to expose PBS to liquidity problems and payments to service providers and/or suppliers with regard to both song contests were not being made in a timely manner.

Malta will be hosting the next contest after Malta won the competition this year.

Whilst PBS generates revenue from attracting sponsorships and airtime sales, the Government annually also provides a grant of around €3 million, in view of its Public Service Obligation.