July 5, 2010

Profits up 13.6 per cent at BBC Magazines

BBC Magazines today reported operating profit up 13.6 per cent to £18.4m for the year to the end of March on turnover down 1.3 per cent to £168.3m.

The magazines division of BBC Worldwide includes titles such as Top Gear, Radio Times, GoodFood and Gardeners’ World.

In its annual report, published today, BBC Worldwide said: “Consumer magazines have faced a difficult environment in the UK over the last 12 months: advertising revenue and newsstand circulations both fell for the market as a whole. However magazine subscriptions were more resilient.”

It said: “We are expecting a further increase in profitability for Magazines in 2010/11 as investments in the current year are realised and as the business sees a full-year benefit from the 2009 restructure.

“Magazines has exceptionally strong brands, delivers consistent value to advertisers and readers, and operates in market sectors which we expect to remain relatively resilient, in spite of longer-term concerns about the health of markets for printed products.

“This continues to provide a strong foundation for the growth of the business that we anticipate will come from continued increases in subscriptions, from the digital extensions of our brands, and from the further development of our international strategy.”

The company said it continues to seek new commercial partners for its magazines division: “As BBC Worldwide is restricted by constraints in both its borrowing capability and editorial remit, as well as having other strategic priorities, we intend to explore possible partnership opportunities to help us ensure the business is properly funded for the task ahead.”