MUMBAI: BBC Worldwide has published its 2013/14 Annual Review, revealing a year of solid underlying growth, and increased returns to the BBC.
Headline profit increased 0.7% to ?157.4m (2012/13: ?156.3m), and was up 11.6% at constant currency*. Headline profit margin increased from 14% to 15.1%, a record for the company. This was achieved on headline sales of ?1,042.3m (2012/13: 1,115.8m), down 6.6%, or 5.2% at constant currency, principally reflecting portfolio changes: the sale of Lonely Planet and a new revenue share agreement for BBC.com. Adjusting for these, trading revenue was broadly flat, with growth from non-English language markets, sales to digital platforms and advertising helping to offset pressure on US and UK affiliate fees and declining DVD markets.
These results were delivered despite the strengthening of sterling in the year. Movements in foreign exchange rates had a ?17.1m negative impact on the headline profit.
BBC Worldwide CEO Tim Davie said: “BBC Worldwide performed well, reflecting the quality of our content and enabling reinvestment into the UK television industry. Headline profit at constant currency, shareholder returns and returns to the indie sector all grew by double digits. This was achieved at the same time as a major re-shaping of the company along regional lines.
“We will continue to execute on our strategy - more premium content, dynamic global brands and digital innovation - in the course of the new financial year. While our results for 2014/15 will reflect the choices and investments we are making to do this - including BBC Store and the introduction of new brands - we nonetheless expect to deliver further returns to our shareholder over the course of the year.”