Profit before interest and taxation

BBC Worldwide has beaten its target of doubling profit over two years. Profit before interest and taxation has grown to £89.4 million (2005: £55.2 million, 2004: £36.7 million). Profit before interest and taxation includes £9.3 million profit on the sale of a package of rights and £1.7 million profit on disposal of part of the Learning business. Total operating profit increased from £57.5 million to £78.9 million.

Turnover

Turnover including share of joint ventures grew 11% to £784 million. This included the effect of 12 months 2 entertain turnover (2005: 4 months).

Turnover excluding joint ventures grew 2% to £556 million. Prior year turnover of £545 million included £29.0 million from activities now transferred to the 2 entertain joint venture.

BBC Cashflow

BBC Cashflow, the BBC's measure of how much cash BBC Worldwide returns to the BBC, rose 28% to deliver record cash to the BBC of £185 million. BBC Cashflow in 1996/97, the start of the current BBC Charter, was £53 million. Cumulative BBC Cashflow over the period to date is £1.1 billion.

Future Performance

BBC Worldwide expects to deliver profit before interest and taxation of over £100 million in 2006/07. Although no longer the key measure of performance, BBC Worldwide also expects to meet its 10-year target of delivering over £200 million of BBC Cashflow by the year 2006/07.

Key Performance Indicators (KPI's)

BBC Worldwide's primary target is growth in profit before interest and taxation. Specific operating and financial KPI's relevant to individual businesses achieving this objective are highlighted in the trading results below.