BBC Commercial, the revenue-generating arm of the British Broadcasting Corporation, has revealed a dip in sales and earnings for the 2023/24 fiscal year.
The sales of £1.9 billion ($2.4 billion) and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of £199 million ($256.5 million) represent a decrease from the previous year’s £2.1 billion in sales ($2.7 billion) and £252 million ($324.8 million) EBITDA, reflecting what the company describes as “challenging market conditions.”
BBC Studios, the main commercial subsidiary, made strategic investments during the year, including the full acquisition of BritBox International. Now part of BBC Studios’ global media and streaming operation, the streamer reported 3.8 million subscribers with a 25% annual growth rate. The company also expanded its international production footprint with acquisitions in Scandinavia, Spain and Australia.
VFX Working Conditions Need to Change, but Current Unionization Option May Not Be the Answer
'Captain America 4' Star Harrison Ford Was Baffled When Asked about MCU's Earth-616 and Anchor Beings: 'I Am in Universe 616? I Am Out of My Orbit'
The company reported record levels of investment in content, producing notable programs such as “Planet Earth III,” “The Famous Five” and “Einstein and the Bomb.” BBC Studios’ content received industry recognition with 123 award wins from 401 nominations. The company produced seven of the top 10 performing shows in the U.K. in 2023, including high-profile events like Eurovision and the coronation of King Charles III and Queen Camilla.
BBC Commercial remains on track to meet its five-year returns commitment of £1.5 billion – a 30% increase on the previous five year-period – by 2026/27, having achieved cumulative returns of £693 million in the first two years, the corporation said.
Tom Fussell, CEO of BBC Commercial, stated: “The last financial year saw good progress against our strategic objectives through record investment. Despite the challenging external environment, we saw good underlying growth and our long-term ambition to double the 2022 business remains.”
The “Bluey” and “Dancing With the Stars” franchises continued to perform well internationally while iconic cult IP “Doctor Who” celebrated its 60th anniversary and introduced a new Doctor in Ncuti Gatwa.
The company also released its annual pay gap report, which for the first time includes data on socio-economic background alongside existing metrics on gender, ethnicity, disability and LGBTQ+ employees. The report reveals that median pay gaps by career band below the senior leader level remain low across all characteristics, with over 90% of its workforce in a career band with a pay gap of under 5%. However, the company noted an exception with the disabled workforce, which it plans to address through various initiatives.
Addressing the pay gap report, Fussell said: “We recognize that while we are making progress, there is still more work to do, including how we recruit and how we educate recruiting managers across the business. As BBC Studios embarks on its transformational growth journey, part of our success will be measured on our ability to grow and empower our teams to deliver results as we develop a more representative workforce.”
