The BBC’s commercial arm, BBC Worldwide, has announced record profits of £55 million for 2004/05, notching up a year on year increase of 50% due to exceptional performances by its TV sales business, increases in magazine circulation and record DVD sales.
The Corporation’s TV sales business saw record profits of £31.7 million as BBC Worldwide sold over 40,000 hours of its programmes. Meanwhile, cash flow to the BBC was up by £4 million to a new high of £145 million.
The release of critically acclaimed Little Britain on DVD also boosted BBC Worldwide’s fortunes, with the show shifting 1.3 million units to become the best-selling non-film title of the year.
BBC magazines also saw a healthy 12 months, with circulation increasing by 8% year on year, and BBC Worldwide continued to benefit from the rights to sell ITV and Channel 4-commissioned programmes from independent producers for the first time.
Commenting on the rise in profits, John Smith, chief executive of BBC Worldwide, said: “This has been a key year for BBC Worldwide and the company has delivered excellent results. We have completed a reorganisation, made some board changes, begun to develop a new strategy, and are now halfway towards the target of doubling profits over 24 months. The cash we returned to the BBC from both profits and direct investment into programming was also a record £145 million.”
Explaining the positive effect of the recent review of commercial activities by the BBC, Smith continued: “We now have a clear understanding of our role, scope and objectives, and of BBC Worldwide’s relationship with the BBC. The contributions offered by a wide range of external contacts were very useful, and we have acted to address major concerns by, for example, selling the women’s magazine eve and stopping the trailing of magazines on BBC television.”
Mark Thompson, director general of the BBC, added: “This success reflects Worldwide’s ability to create products and services which people in the UK enjoy. Internationally, BBC Worldwide’s channels and publishing activities are an important showcase for the best of UK culture and creativity. I look forward to continuing great success from the BBC’s main commercial entity.”
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