The Audit Bureau of Circulations (ABC) reports
on magazines performance in the UK every six
months. The year on year growth rates for the
period July to December for the top 5 titles by
circulation were as follows:

Magazines Circulation	06 (%)	05 (%)
Radio Times	(1.3)	(4.2)
BBC Good Food	0.5	0
BBC Gardeners World	(8.5)	(9.8)
BBC Top Gear	5.9	10.0
BBC Good Homes	4.6	22.2

Home Entertainment profits increased to £25.8 million (2005: £8.7 million). Performance in the year resulted from strong DVD front list sales and the first full year of the newly created 2 entertain joint venture, unencumbered by the effect of transition. The video/DVD activities of the 2 entertain joint venture delivered £99.7 million turnover (2005: £56.7 million - 4 months only). In addition, the Books business has moved into profit of £1.0 million (2005: £3.1 million loss) and a £1.7 million gain was generated on disposal of part of the Learning business.

Children's (excluding magazines) reduced its losses to £0.9 million (2005: £6.6 million loss). Improvement was driven by a strong performance in the core business, reduced amortisation charges and the full year effect of the cost reduction programme initiated in the prior year.

Digital Media (formerly New Media) includes Music, Radio, sales to Mobile, Audiocall and the BBC Motion Gallery clips business. Profits rose to £3.4 million (2005: £4.8 million loss). Broadcasting Dataservices Limited was disposed of during the year having made losses of £3.6 million in the prior year. In addition, a package of rights was disposed of during the year for £9.3m million, providing funds for restructuring and development of new services.

Overseas Sales

For the first time, BBC Worldwide's overseas sales (excluding joint ventures) exceeded UK sales (51% overseas, 49% UK), led by growth in Content & Production, Global Channels and Global TV Sales.

Acquisitions and disposals

BBC Worldwide's trading activity includes the acquisition, development, exploitation, licensing and sale of intellectual property. During the year ended 31 March 2006 BBC Worldwide completed a number of transactions and the rationalisation of several businesses in pursuit of its strategy as follows:

In May 2005 BBC Worldwide purchased the remaining 25% minority interest shares in Broadcasting Dataservices Limited, before disposing of its 100% holding to BBC Broadcast Limited, a fellow BBC subsidiary, in July 2005. There was no profit or loss on disposal.

BBC Worldwide also completed the sale of a package of rights in May 2005. A total cash consideration of £10.3 million was received, generating a profit on disposal of £9.3 million.

In August 2005 BBC Worldwide announced its intention to terminate its teacher learning business at a cost of £0.5 million.

In October 2005 BBC Worldwide entered into an agreement with Pearson Education to form a partnership branded BBC Active. In return for the transfer of assets of its Learning business, BBC Worldwide acquired a 15% stake in the new partnership. BBC Worldwide received net cash proceeds of £6.3 million in return for assets with a book value of £4.6 million.

Joint ventures and associates

In line with FRS9, BBC Worldwide has shown its share of joint venture turnover of £228.4 million (2005: £160.9 million) on the face of the profit and loss account. Gross assets and liabilities are presented on the balance sheet. The Group's share of operating profit of joint ventures, after goodwill amortisation of £1.7 million, was £30.4 million (2005: £18.5 million).

The Group's share of turnover for the 12 month period to 2 entertain's 31 January 2006 accounting reference date was £115.2 million (2005: £64.0 million - 4 months only) and the share of operating profit after goodwill amortisation was £25.8 million (2005: £15.9 million).