BBC Studios, the BBC’s commercial arm, has passed the £2 billion ($2.7 billion) mark in sales and made a profit of £240 million, but falling sales are hampering its sales and marketing efforts.
The organization unveiled its annual report for 2022/2023 on Tuesday amid the scandal that has made the BBC national headlines since July 6. The meeting organized by top brass was closely followed by questions about the BBC’s handling of complaints. of its presenters, who are accused of paying a teenager for pornographic images. The sponsor has not been named due to privacy concerns.
While BBC Studios director Tom Fussell was due to give a press briefing on the annual report, this was canceled due to a wider scandal, which saw director Tim Davie fielding a barrage of questions from the media.
The report shows revenues of £2.09 billion for BBC Studios, which is up 28% over 2022. This has been driven by the company’s production and distribution arm, known as Content Studio, and a major long-term contract. such as “Bluey” and “Dancing With the Stars.”
Profit (EBITDA) increased to $ 240 million, which increased by 6% from $ 226 million last year, while the returns to the BBC came in at $ 362 million (2021/2022: $ 353 million), investing in acquisitions. £177 million.
The International Studio – which consists of production, sales, marketing and licensing worldwide – grew throughout the year, with sales of 40%, and EBITDA increased to $ 46 million. More than 75% of the studio’s revenue now comes from third parties, including Amazon, Apple and Netflix. This is particularly important as BBC Studios has built a huge portfolio over the past five years to sell and produce for broadcasters around the world. Key titles included “Dancing With the Stars,” “Happy Valley” and “Sherwood,” while BBC Studios also covered the Platinum Jubilee and Queen Elizabeth’s funeral.
One notable decline in the 2022 figures relates to the industry’s Channels & Streaming segment, which reported revenue of $535 million – down from $536 million last year – but a significant drop in profit to $102 million, down 24% from at $120 million. The company blamed inflation, a volatile advertising market and forced TV subscriptions.
Elsewhere in the report, BBC Studios highlighted its FAST channel, which now operates 22 channels around the world. The company also revealed that its “Best of British” joint service with ITV, BritBox International, has 3 million subscribers in eight markets including the US, Canada, Australia, the Nordics and South Africa – up 15% from 2022. By comparison, the BBC .com reached 123 million per month, and plans to “boost business” Stateside.
BBC Studios has revealed a new plan to increase business growth from March 2021/22 to March 2028. In the annual report, the company explains that it will do this by expanding its IP by “using and expanding new products, strengthening operations. of communication channels, while expanding services of digital content targeting consumers and investing in key customer relationships.” The business has warned that this will impact profits in the future.
Tom Fussell, CEO of BBC Studios, said: “I am extremely proud of these results, which demonstrate the strength of our content driving our growth strategy. Our global Content Studio has had an exceptional year, growing by almost half and winning awards for innovation and creativity. of all genres, and to cover international events in a variety of ways. Revenues have been stable for our films and advertising activities around the world, despite external challenges caused by inflation and volatility in the advertising market, and we also made significant investments in the production label, the BBC. com and UKTV to promote and encourage future growth.”
“Looking ahead, we have ambitions to double the business by 2028, capitalizing on future growth and market volatility, which may impact profitability in the short term,” Fussell said. “At the same time, we are changing our culture to prioritize inclusion, efficiency, and putting performance at the heart of everything we do.”