Operating profits at the BBC’s commercial division, BBC Worldwide, fell 27% year on year to £85.7 million in the year to the end of March.
However, the figures, revealed today in the Corporation’s annual report, also show that revenue was up 9.5% year on year, passing the £1 billion mark.
BBC Worldwide said that profits were down due to two points 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, a DVD distribution joint venture with defunct high-street chain Woolworths.
John Smith, BBC Worldwide chief executive, said the figures reflected the continued strength of the business – where almost £50m was invested in new initiatives last year – in spite of a severe downturn impacting all parts of the media and entertainment industry.
