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BBC Worldwide to focus on HD, US and Asia
Rose Major
High definition launches, new US, Asian and western European channels and localisation will be in BBC Worldwide's focus in the coming year, according to the company’s annual report published yesterday.
The international channels business of BBC Worldwide was one of the highlights of yesterday’s results, with double-digit percentage growth in sales of 16.4% and growth in profits of over a third (34.2%) in the year to March 31 2010.
BBC Worldwide now has 41 branded channels internationally, 29 of which are BBC-branded, including BBC America which has grown its distribution to 67.1 million home. Sales at the channels division rose from £225.6 million to £262.6 million with profits up from £29.2 million to £39.2 million.
Broken down into regions, Europe, Middle East and Africa (EMEA) accounted for sales of £173.4 million (prior year £159.5m), the Americas £52.5 million (£47.3m) and Asia-Pacific £36.7 million (£18.8m). All regions are now profitable, with Asia turning a £4.3 million loss for the previous year into a £1.4 million profit. The Americas accounted for £6 million of the business’s profit (£4.3m) and EMEA the lion’s share at £31.8 million (£29.2m).
“The year’s focus was consolidation and growth of our owned & operated (O&O) thematic channels, rolled out from 2006 and subsequently driving increased distribution,” BBC Worldwide’s annual report said. “Year-on-year O&O revenue was up 29.7%, driven mainly by subscription income resulting from additional carriage in Australia of CBeebies and BBC Knowledge and full-year revenues from prior-year channel launches in Australia, Scandinavia, Africa and Latin America. While the global multi-channel TV advertising industry declined 7.1% in 2009 (PricewaterhouseCoopers), Channels grew its international advertising sales by 41.3%. Profits generated by this portfolio more than doubled.”
The unit plans to launch more US channels in the coming year, as well as the focus on HD launches. The company will also explore opportunities in Asia, where it has been growing its channels apace, and western Europe, which represents something of a quiet area for the corporation.
However, BBC Worldwide Ad Sales saw a challenging year, with sales remaining flat. BBC World News in particular had a difficult first half, reflecting, said the company, “disproportionate cuts in pan-regional advertising budgets, but successfully recovered growth in the second half.”
Overall, BBC Worldwide saw sales rise 7% to £1074 million, with operating profits up 36.5% to £145.2 million. Dividend payments to the BBC rose from the previous year’s £68.4 million to £73.6 million.
John Smith, Chief Executive of BBC Worldwide, said: "BBC Worldwide once again demonstrated the depth of its businesses and its financial strength in a difficult year for the industry by lifting revenues beyond a billion pounds for a second year while also continuing to deliver around 10% of the UK's total creative economy exports."
Mark Thompson, Director-General of the BBC, commented: "BBC Worldwide continues to contribute significantly to the BBC through its overall returns and dividend and what is clear from this outstanding year of success is that the global appetite for outstanding British content is greater than ever before."
Rose Major
High definition launches, new US, Asian and western European channels and localisation will be in BBC Worldwide's focus in the coming year, according to the company’s annual report published yesterday.
The international channels business of BBC Worldwide was one of the highlights of yesterday’s results, with double-digit percentage growth in sales of 16.4% and growth in profits of over a third (34.2%) in the year to March 31 2010.
BBC Worldwide now has 41 branded channels internationally, 29 of which are BBC-branded, including BBC America which has grown its distribution to 67.1 million home. Sales at the channels division rose from £225.6 million to £262.6 million with profits up from £29.2 million to £39.2 million.
Broken down into regions, Europe, Middle East and Africa (EMEA) accounted for sales of £173.4 million (prior year £159.5m), the Americas £52.5 million (£47.3m) and Asia-Pacific £36.7 million (£18.8m). All regions are now profitable, with Asia turning a £4.3 million loss for the previous year into a £1.4 million profit. The Americas accounted for £6 million of the business’s profit (£4.3m) and EMEA the lion’s share at £31.8 million (£29.2m).
“The year’s focus was consolidation and growth of our owned & operated (O&O) thematic channels, rolled out from 2006 and subsequently driving increased distribution,” BBC Worldwide’s annual report said. “Year-on-year O&O revenue was up 29.7%, driven mainly by subscription income resulting from additional carriage in Australia of CBeebies and BBC Knowledge and full-year revenues from prior-year channel launches in Australia, Scandinavia, Africa and Latin America. While the global multi-channel TV advertising industry declined 7.1% in 2009 (PricewaterhouseCoopers), Channels grew its international advertising sales by 41.3%. Profits generated by this portfolio more than doubled.”
The unit plans to launch more US channels in the coming year, as well as the focus on HD launches. The company will also explore opportunities in Asia, where it has been growing its channels apace, and western Europe, which represents something of a quiet area for the corporation.
However, BBC Worldwide Ad Sales saw a challenging year, with sales remaining flat. BBC World News in particular had a difficult first half, reflecting, said the company, “disproportionate cuts in pan-regional advertising budgets, but successfully recovered growth in the second half.”
Overall, BBC Worldwide saw sales rise 7% to £1074 million, with operating profits up 36.5% to £145.2 million. Dividend payments to the BBC rose from the previous year’s £68.4 million to £73.6 million.
John Smith, Chief Executive of BBC Worldwide, said: "BBC Worldwide once again demonstrated the depth of its businesses and its financial strength in a difficult year for the industry by lifting revenues beyond a billion pounds for a second year while also continuing to deliver around 10% of the UK's total creative economy exports."
Mark Thompson, Director-General of the BBC, commented: "BBC Worldwide continues to contribute significantly to the BBC through its overall returns and dividend and what is clear from this outstanding year of success is that the global appetite for outstanding British content is greater than ever before."