| MUMBAI:
BBC Worldwide has announced a 9.5 per cent increase in its revenues to over £1bn
for the fiscal ended 31 March 2009.
The figures that were released in London cover all the BBC’s commercial activity
across the globe under the wholly owned subsidiary, BBC Worldwide.
BBC
Worldwide CEO John Smith avers that the figures reflected the continued strength
of the business – where almost £50 million was invested in new initiatives
last year – in spite of a severe downturn impacting all parts of the media
and entertainment industry. Underlying profit grew in line with the increase in
turnover to well in excess of £150 million. Double
digit revenue growth was reported in the channel's content and production and
digital media businesses while sales and distribution remained the company’s
single largest profit center. Smith
says that the company’s share of income generated outside the UK was 51.3
per cent, up from 48.6 per cent, with continued progress in priority markets such
as the US and Australia. “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," Smith adds.
“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
and brands around the world.” In
Asia, BBC Worldwide continued to expand the distribution of its portfolio of BBC-branded
thematic channels. BBC Knowledge and CBeebies were introduced to Indonesian audiences
via Indovision’s DTH service, while BBC HD made its debut in Asia, with the
launch of a subscription video-on-demand (SVOD) service on Taiwan’s Chungwha
Telecom. In
Korea the channel's business launched its first-ever BBC Knowledge programme block
on Science TV, reaching more than 9 million households in prime time. This was
followed by the launch of the 24-hour BBC Knowledge channel on CJ Hellovision,
Korea’s largest digital platform. The
channel's division as a whole recorded improvements across all regions, resulting
in a 22.7 per cent increase in sales to £225.6 million and a 135 per cent
increase in profits to £29.6 million. Global
Sales and Distribution revenue dipped slightly to £231.2 million, but profits
increased to £59.2 million (before eliminating trading with other BBC Worlwide
business). Sales across Asia Pacific increased 9.3 per cent year on year to £34
milion, and profit by 3.6 per cent to £11.5 million. Significant deals included
the launch of Top Gear in China and Taiwan, while In the Night Garden
was sold in China, South Korea, Taiwan and Malaysia. Sales
and distribution also completed its first major volume deals in the emerging market
of Vietnam, with TVM and VBC. On
the production front, BBC Worldwide’s Mumbai production office produced series
three of Dancing with the Stars for Sony. Explaining
this year’s overall 12.8 per cent decline in global profits, Smith cites
organic investment and two exceptional items in particular: a write-down associated
with Kangaroo – its proposed UK online video service with ITV and Channel
4 – and a one-time charge related to 2 Entertain, the DVD distribution joint
venture with 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,” Smith says.
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