BBC Worldwide profits rise by 13% to £112.5m

LONDON - BBC Worldwide, the commercial arm of the BBC, has reported a 13% rise in its pre-tax profits to £112.5m in the 12 months to March 31 due to a bumper sales year which included the international expansion of the 'Top Gear' brand.

Sales climbed 13% to £916.3m, up from £810.4m the year before, while the proportion of sales from outside the UK increased from 46% to 49% of the total.

BBC dramas including 'Jekyll', 'Mistresses' and 'Torchwood' all sold well along with 'Primeval', which was made by Impossible Pictures and appeared on ITV1.

During the financial year, BBC Worldwide continued to invest in its digital and global brands, introducing ads on for web users outside the UK, building the 'Top Gear' brand by licensing it to countries including the US and Australia, and acquiring a majority stake in travel information publisher Lonely Planet.

BBC Worldwide also increased its presence in Australia, India and the USA, which have been identified as top priority markets.

John Smith, chief executive of BBC Worldwide, said: "BBC Worldwide has achieved another year of double-digit profit growth (excluding prior year exceptional items), while also making significant strategic investments in new businesses to prepare the company for the digital media world.

"The continued international appeal of our content and formats, coupled with high demand for home entertainment and the strengthening in key markets of our channels and production operations, has enabled the company to report very good results."

Smith warned that profits for the current financial year could be affected by the "changing global economic conditions" but added that the company plans further significant investments in new businesses, such as Kangaroo, the commercial on-demand media player currently being developed jointly with ITV and Channel 4, which is subject to approvals.

He also announced a strategic review to improve the performance of the children's business and the closure of Audiocall, the telephone services business where payments to charities were wrongly withheld last year.

Separately, Mark Thompson, director-general of the BBC, which also released its annual report, was forced to defend pay rises of up to £107,000 given to each of the corporation's executive directors.

The pay increases follow the BBC's decision last October to axe up to 1,800 jobs after it received a smaller than expected licence fee settlement from the government.

Ashley Highfield, the BBC's former future media executive director who has now left his post, saw his overall pay package rise by £107,000 to £466,000 in the 2007/08 financial year. The sum includes a bonus, a pension supplement, expenses and benefits.

Jana Bennett, BBC Vision director, saw her total pay package increase by more than £103,000 to £536,000 in the same period, however her bonus had been reduced to £23,000 because of fakery scandals surrounding some TV shows.

Thompson, who waived his own right to a bonus, said after "a major restructuring", a number of executive directors received a boost in their salary after being handed greater responsibilities.

He said that the levels of BBC salary, benefits and bonuses were "in many cases, a tiny patch on what other broadcasters pay".

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