BBC Studios hits record $2.7B annual revenue

BBC Studios, the U.K. public broadcaster’s commercial arm, reported record full-year financials, including its highest-ever revenue and earnings, touting on Tuesday the strength of its Content Studio unit and “thriving brands like Bluey and Dancing With the Stars.”

The company unveiled key strategic and financial performance data for the fiscal year 2022/2023, which ended in March. Overall revenue, or sales, crossed the milestones of £2.0 billion, $2.0 billion and $2.5 billion, hitting £2.09 billion (nearly $2.70 billion), up 28 percent from the £1.63 billion recorded in the previous year. “This increase was driven by growth in its global Content Studio, which fuelled BBC Studios’ catalog, while thriving brands like Bluey and Dancing with the Stars and strong long-term partnerships also contributed to the year’s performance,” the company said.

Its profit, as measured in earnings before interest, taxes, depreciation and amortization (EBITDA) rose 6 to £240 million ($310 million) from £226 million “despite pressures from inflation, a volatile advertising market and pressure on pay TV revenues.”

BBC Studios also highlighted a new revenue goal. “Having already doubled over the past five years to March 2022, BBC Studios is now aiming to double the size of the business again from 2021/22 to 2028,” the firm said.

BBC Studios’ Content Studio, housing production, content sales, brands and licensing globally, grew revenue by 40 percent in the latest fiscal year, with EBITDA also rising. “Over 75 percent of its revenues are now from third parties, including Amazon, Apple and Netflix,” the company highlighted. “Its award-winning content ranged from worldwide entertainment icon Dancing With the Stars, to dramas Happy Valley and Sherwood. Creative collaborations included hip-hop legend Chuck D and filmmaker Jon Favreau, while BBC Studios brought the world coverage of two significant national and international moments with the Platinum Jubilee and the State Funeral (of Queen Elizabeth II). BBC Studios’ creativity achieved widespread recognition in the year with 111 awards from 440 nominations.”

Bluey is produced by Ludo Studio and co-commissioned by the Australian Broadcasting Corporation and BBC Studios, which holds global distribution and merchandising rights. “Alongside the success of global children’s phenomenon Bluey, which helped to drive consumer products revenue up 10 percent, the business expanded brand tie-ups, including the successful collaboration between Minecraft Education and Frozen Planet II, and the launch of a BBC Earth Experience in London,” the company highlighted.

Meanwhile, BBC Studios’ Channels & Streaming unit held revenue “steady at £535 million” ($691 million), the company noted. “External challenges including inflation, a volatile advertising market and pressure on pay TV subscriptions affected profits, with EBITDA down 24 percent. Streaming and online remain a focus area. “22 FAST (free, ad-supported television) channels are now available internationally, offering 6,000 episodes of content on platforms including Samsung TV Plus and Roku, while BritBox international logged 3 million subscribers in eight markets,” the company noted. “Now in its first full year within BBC Studios, BBC.com, the world’s most trusted international news brand, reached 123 million a month, with upgrades to the website and app, and key new hires to boost the business in the U.S.”

BBC Studios’ returns to the BBC also hit a record of £362 million ($468 million), up from £353 million in the previous fiscal year.

The overall annual results “show the strength of our content driving our growth strategy,” said Tom Fussell, CEO of BBC Studios. “Our global Content Studio had an exceptional year, growing by nearly half and winning awards for creativity and craft across all genres, as well as covering significant national moments with distinction. Revenue held steady overall in our channels and streaming services internationally, despite ongoing external challenges posed by inflation and volatility in the advertising market, and we made further investment into production labels, BBC.com and UKTV to promote and sustain future growth.”

Added the CEO: “Looking ahead, we have bold ambitions to double the business by 2028, while investing for future growth and market volatility, which will impact short-term profitability. At the same time, we are continually transforming our culture to prioritize inclusion, operate sustainably and put performance at the heart of everything we do.”

In that context, BBC Studios also published its annual pay gap report on Tuesday, with details of pay gaps for gender, ethnicity, disability and LGBTQ+ employees broken down by career level band. The company summarized that “it continues to make progress in reducing pay gaps across all key characteristics, with 90 percent of staff in pay bands where the gap is within 5 percent, and women now making up 51 percent of senior leader positions globally.” The Hollywood Reporter