This year we achieved record sales (£446m), record cash flow contribution (£81m), moved our operating performance from a loss to a profit, increased profit before tax by 67% and achieved a record 38 industry awards for our work, reflecting the strong creativity and expertise we have.

Our long term strategy is now in place

It is centred on achieving marketing and creative excellence in the way we develop, manage and exploit brands. These brands are driven by our overall television presence at home and abroad, and executed with panache in a range of different media formats and products.

Organising to execute our strategy

We have reorganised ourselves to get maximum exploitation of this brand-based strategy, by establishing publishing groups by genre in the UK and marketing teams by genre. They are supported by the specialist expertise of our International Television and International Publishing teams. Their product output is brought to the marketplace in an integrated way by regionally-based sales and marketing teams.

Management teams strengthened

Over the past year, we have brought in an exceptional array of new talent to BBC Worldwide - especially in the areas of brand management, product, and trade and sales marketing.

In addition, Peter Teague took over as Deputy Chief Executive and Managing Director of the UK Region. Peter Phippen moved from the UK to become Chief Executive of BBC Worldwide Americas.

Mike Phillips moved from the Rights Agency to become Director, International Television. Patrick Cross was appointed Managing Director of BBC WORLD. David King was confirmed as Finance Director. We appointed Gary Richards as Technology Director in April 1999.

Our core people programme, 'For a Better World' is now uniting, motivating and developing our staff.

Brands - Teletubbies hits £32m revenue

Our major global and UK brands made great advances during the year. We plan to develop and market 18 further global brands from our current slate, with many more in the pipeline.

Channels - reach 230m homes

Our channels (both wholly-owned and joint venture) now reach 230m* homes around the world, up from 115m* a year ago. In an increasingly competitive television market, this provides important outlets for our programming and builds significant asset value for our brands.

Television sales - 7% growth

Television sales rose by a further 7%, from £126m to £135m. Our 1999 BBC Showcase event attracted a record 440 international television programme buyers to the UK, and helped us secure substantial revenues.

Books - Delia passes million mark

Our UK region published 130 new book titles, including the runaway success, Delia's How to Cook: Book One, as well as 130 video and 110 audio titles.

Magazines - circulation beats UK trend

We had a strong year in our key magazine division. BBC titles' circulation rose by 9.4%, compared with a UK market decrease of 3.3%. We introduced local editions of BBC magazines for the first time in Australia.

*measured on an aggregated basis

Continued expansion in the Internet and new media

BBC Worldwide's commercial web service, beeb.com, more than doubled its traffic, while the business itself generated five times more income. CD-ROM sales grew by 36%.

Merchandise moves up the value chain

BBC Worldwide is increasing its margins by getting involved further up the 'value chain' by controlling sourcing.

Sharing our success with UK talent

BBC Worldwide's payments to UK talent - including actors, musicians and writers - were up by over 20% on 1997/98. This represents a step change in the benefits enjoyed by contributors, as revenues grow and new sources of income come on stream.

Increasing transparency and accessibility

This is the second year we have published our annual report. This year we have disclosed even more information - significantly more than any of our competitors. We commissioned our own audit of our television investment rates and selling prices - to show that we are at or above market rates in both categories. We published our guide to 'Who We Are and What We Do'. We established clear contact mechanisms for independents and agents as well as our talent core.

I hope you enjoy reading this report about our activities and our exciting plans for the future. Everyone in BBC Worldwide is extremely proud to be marketing so effectively the best the BBC has to offer to millions and millions of people around the world.

Rupert Gavin
Chief Executive
BBC Worldwide Limited