Overview

BBC Magazines' portfolio has more than 50 regular titles across a range of sectors, including nine marketleading magazines. One in four UK adults reads a BBC title every month, extending their enjoyment of BBC radio and television programmes through the pages of Radio Times, Top Gear, Good Food and Gardeners' World and others.

BBC Magazines' strategy is to continue to launch strong magazines in the UK which extend viewers' enjoyment of the BBC's output; to build webzines utilising our strong brands and expertise in particular markets; and to build internationally.

Financial performance

BBC Magazines' profit was £19.3m versus £22.0m in 2004/05, which included profits from the sale of Eve magazine as well as significant costs arising from the move of titles to Bristol (see Origin below). On a normalised basis operating profit is at £20.7m in the current year versus £20.2m in the previous year, with strong performances from lifestyle and specialist titles offsetting challenging conditions in the children's market.

Circulation

The July to December 2005 independently audited copy sales figures showed some excellent growth for BBC Magazines. Top Gear increased its lead over its nearest rival by 12,000 copies and celebrated its 24th consecutive period as market leader; Good Homes was Britain's fastest-growing home interest title for the third consecutive period; Good Food was again the star performer among independent food magazines while Olive gained ground on its key competitor; Radio Times retained its position as the UK's biggest-selling premium-priced listings magazine and won back its leadership of the Christmas TV listings market; Top of the Pops magazine retained its spot as number one teen entertainment title while its principal rival Smash Hits closed; and Focus magazine grew its newsstand sales by 7%.

BBC Magazines also continued to show strong growth in subscriptions sales and an improvement in their profitability. It now has nearly 600,000 subscribers compared to 500,000 some 18 months ago. Radio Times has performed particularly strongly, quadrupling its subscriptions in under two years to more than 60,000. This strategic emphasis on subscriptions will continue in 2006/07.

A new children's title was launched during the year, CBeebies Weekly for pre-school children, and two just after year end, Amy for five-to-eight year old girls and Doctor Who Adventures. This brings the total number of children's magazines to 21.

Advertisement sales

BBC Magazines advertisement sales team grew its share compared to its competitive set again this year. Good Food, Good Homes and Top Gear all performed particularly well. The year culminated with a major piece of consumer research called 'Big Britain' that challenged assumptions about the views of mainstream British people. One in four Big Britons, who share similar views about the enviroment, social injustice and the desire to simplify life, read a BBC magazine.

Origin

The specialist publishing arm, Origin Publishing in Bristol, launched Sky at Night in May 2005. Gardens Illustrated moved to Origin from BBC Magazines' London publishing base during the year, while Homes & Antiques will transfer there in September 2006. In April 2006 BBC Magazines announced that it had sold 61% of Origin Publishing Ltd and all its non-BBCrelated consumer titles to a management buy-out team as part of a staged exit. BBC Magazines retains the BBC-branded titles in a new subsidiary called Bristol Magazines Ltd.

Reaching out to readers

This year saw the creation of Dovetail, a joint venture combining BBC Worldwide's subscription fulfilment business Galleon and Dennis Publishing's Customer Interface Ltd. The new company intends to become the UK's market leader in subscriptions fulfilment, serving both its shareholders and third-party publishers.

BBC titles continue to be distributed on the newsstand through Frontline Ltd, its joint venture with UK publishers Emap, H Bauer and Haymarket. The past year saw it consolidate its position as the UK's leading distribution company, signing some new contracts with wholesalers and achieving 'category' captaincy in a number of major retailers.

Online

This year saw the growing importance of websites in the UK reflected in more than two million unique users visiting BBC magazine websites every month. Radiotimes.com is the UK's premier online television listings website and is also available on PDAs and mobile phones through relationships with O2, Orange and Vodafone. Radio Times also has an agreement with Gemstar TV Guide to offer a branded electronic programme guide. Top Gear magazine's website, topgear.com, is another example of a successful and profitable online companion to a magazine. It combines entertainment and information in its own unique way, reaching over 900,000 users every month. BBCGoodFood.com will be launched in autumn 2006.

Events and exhibitions

BBC Haymarket Exhibitions is a joint venture between BBC Worldwide and Haymarket Exhibitions. Since its launch it has been one of the most successful consumer exhibition companies in the UK, with its shows, such as Good Food, Good Homes Live It! and Gardeners' World Live attracting over 330,000 visitors each year. This year saw the launch of The Summer BBC Good Food Show, co-located with Good Homes Live It!. Next year the food portfolio will be further increased with a new show in Glasgow.

International

The past 12 months saw BBC Magazines increase its international presence. The number of internationally licensed editions has grown with Top Gear now being published in 30 countries, while Good Food launched in Romania and Teletubbies in Poland.

BBC Magazines' joint venture in India, Worldwide Media, is performing well and launched Top Gear magazine successfully during the year. The business is looking to increase activity in a number of other countries during 2006/07.

Sales(£m)	06	05
Radio Times	56.0	57.1
Specialist (Origin)	23.0	19.3
Lifestyle	47.9	59.4
Children's *	25.2	27.7
Share of joint ventures	11.6	5.9
Total	163.7	169.4

Profits(£m)	06	05
Radio Times, Lifestyle, Specialist	16.5	17.9
Children's *	1.6	2.9
Share of joint ventures & associates	1.2	1.2
Total	19.3	22.0

* also reported under Children's

More on pre-school titles