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BBC Worldwide Ltd, the commercial and wholly owned subsidiary of the BritishBroadcasting Corporation (BBC), today published its Annual Review for 2008/09.
The company saw revenues rise by 9.5% to UKP1.003.6bn from UKP916.3m in the 12 months to 31st March 2009, while operating profits declined 12.8% to UKP102.6m from UKP117.7m as planned investment impacted the bottom line. The impact of exceptional charges took profit before interest and tax to UKP85.7m (2007/08: UKP117.7m).
Underlying profit grew in line with the increase in turnover to well in excess of UKP150m. BBC Worldwide also delivered payments to the BBC of UKP68.8m (2007/08: UKP49.4m), which, with increased direct investment in BBC programming and rights, helped lift the overall return to the corporation by around 20% to over UKP170m.
Announcing the results, John Smith, Chief Executive of BBC Worldwide, said the figures reflected the continued strength of the business – where almost UKP50m was invested in new initiatives last year – in spite of a severe downturn impacting all parts of the media and entertainment industry.
The company made progress in all of its strategic growth objectives:
“BBC Worldwide demonstrated the depth of its businesses and its financial strength in a difficult year for the entire industry by lifting revenues beyond a billion pounds, and we substantially increased our returns to the BBC,” he added.
“In spite of volatile conditions and heavy investment in several parts of the business, we remain encouraged by the growth prospects and performance of our core operations andbrands around the world.”
Etienne de Villiers, Non-executive Chairman of BBC Worldwide, said: “The company is the global showcase for the best of British creative talent. It is a major cog in Britain’s creative industries, investing heavily in new production, new businesses and digital extensions of the BBC brand. Over the last four years it has become a major international media player competing on the global stage.”
Mark Thompson, Director-General of the BBC, commented: “BBC Worldwide has shown once again what a huge contribution it makes to the entire BBC, with its dividends and overall returns strengthening our ability to reinvest in world class content across multiple platforms – enjoyed by audiences at home and around the globe."
Mr Smith explained that profits at BBC Worldwide had declined due to organic investment and two exceptional items in particular: a write-down associated with Kangaroo – its proposed online video service with ITV and Channel 4 – and a one-time charge related to 2entertain, the DVD distribution joint venture with Woolworths Group plc.
The exceptional items reflected investment costs at Kangaroo, which was blocked by the Competition Commission, and pension liability at 2 entertain following the collapse of Woolworths.
“We have continued to trade strongly in spite of some challenging market conditions. Our strategy of diversification across business areas and territories, and our continuing investment in new opportunities, especially digital, reflects our confidence in the outlook for BBC Worldwide although trading conditions are likely to remain volatile for the rest of this year and into 2010.”
The company saw revenues rise by 9.5% to UKP1.003.6bn from UKP916.3m in the 12 months to 31st March 2009, while operating profits declined 12.8% to UKP102.6m from UKP117.7m as planned investment impacted the bottom line. The impact of exceptional charges took profit before interest and tax to UKP85.7m (2007/08: UKP117.7m).
Underlying profit grew in line with the increase in turnover to well in excess of UKP150m. BBC Worldwide also delivered payments to the BBC of UKP68.8m (2007/08: UKP49.4m), which, with increased direct investment in BBC programming and rights, helped lift the overall return to the corporation by around 20% to over UKP170m.
Announcing the results, John Smith, Chief Executive of BBC Worldwide, said the figures reflected the continued strength of the business – where almost UKP50m was invested in new initiatives last year – in spite of a severe downturn impacting all parts of the media and entertainment industry.
The company made progress in all of its strategic growth objectives:
- share of income generated from outside the UK rose from 48.6% to 51.3% of the total (target - two thirds by 2012);
- revenues from online activity rose from 2.7% to 4.6% (target - 10% by 2012);
- 15 more BBC-branded channels were launched and TV production capability expanded to New York, Toronto and Paris (target - fast track channels and production businesses);
- minority stakes were secured in a number of UK independent companies to provide seed-funding in return for distribution rights and the remaining 80% of Australian joint-venture entertainment channel UK.TV was acquired from partners FOXTEL and Fremantle (target – use acquisitions to help achieve the overall plan).
“BBC Worldwide demonstrated the depth of its businesses and its financial strength in a difficult year for the entire industry by lifting revenues beyond a billion pounds, and we substantially increased our returns to the BBC,” he added.
“In spite of volatile conditions and heavy investment in several parts of the business, we remain encouraged by the growth prospects and performance of our core operations andbrands around the world.”
Etienne de Villiers, Non-executive Chairman of BBC Worldwide, said: “The company is the global showcase for the best of British creative talent. It is a major cog in Britain’s creative industries, investing heavily in new production, new businesses and digital extensions of the BBC brand. Over the last four years it has become a major international media player competing on the global stage.”
Mark Thompson, Director-General of the BBC, commented: “BBC Worldwide has shown once again what a huge contribution it makes to the entire BBC, with its dividends and overall returns strengthening our ability to reinvest in world class content across multiple platforms – enjoyed by audiences at home and around the globe."
Mr Smith explained that profits at BBC Worldwide had declined due to organic investment and two exceptional items in particular: a write-down associated with Kangaroo – its proposed online video service with ITV and Channel 4 – and a one-time charge related to 2entertain, the DVD distribution joint venture with Woolworths Group plc.
The exceptional items reflected investment costs at Kangaroo, which was blocked by the Competition Commission, and pension liability at 2 entertain following the collapse of Woolworths.
“We have continued to trade strongly in spite of some challenging market conditions. Our strategy of diversification across business areas and territories, and our continuing investment in new opportunities, especially digital, reflects our confidence in the outlook for BBC Worldwide although trading conditions are likely to remain volatile for the rest of this year and into 2010.”
