BBC Worldwide is the commercial arm of the BBC. With its focus firmly on maximising profits, it manages six operating businesses: Global Channels, Global TV Sales, Content & Production, Magazines, Home Entertainment and Digital Media. Throughout its operations, BBC Worldwide combines the values and integrity of the BBC with the commercial skill, acumen and strength of a major global corporation.

KEY PERFORMANCE HIGHLIGHTS 2006/07

BBC Worldwide had a very successful 2006/07, posting profits of £111.1m from revenues of £810.4m - a threefold increase in profits in just three years. There were four principal drivers behind this growth:

• Focusing the whole company on profit growth following the BBC's 2004 Commercial Review;
• Disposing of, exiting or turning around loss-making businesses;
• Creating and growing returns from two new businesses - Global Channels and Content & Production; and
• Strong trading across more mature businesses, notably Global TV Sales.

GLOBAL GROWTH

Together BBC Worldwide and BBC World have offices in 18 major cities around the globe and will be adding to these bases over the next two years in key markets. BBC Worldwide has developed a strategy to drive international growth, based around three key groups of territories (see below). The aim is to increase revenues from outside the UK to around two-thirds by 2012.

A CLEAR STRATEGY FOR GROWTH

BBC Worldwide has now established a clear strategy to drive its global growth over the next five years. This strategy comprises four parts:

1. Grow overseas revenues to two-thirds

In 2006/07, 46% of BBC Worldwide's total revenues came from overseas, up from 41% in 2005/06. The company plans to raise the proportion to around two-thirds by 2012. To support this objective, it is focusing its international strategy on three key territory groups:

Group One: In markets where English is widely spoken (e.g. USA, India, Australia, Canada), significant investment is planned to build a more substantial scale across all six businesses in all these territories;

Group Two: These are territories which are very high-growth markets but where the company is not yet committing on a major scale (e.g. China, Latin America, Eastern Europe, South Africa). The company does not expect all six divisions to be able to acquire scale in all of these territories over the next five years, but will pursue specific initiatives (such as channel launches or local productions) as opportunities arise;

Group Three: In developed countries where BBC Worldwide already carries out a significant amount of business, and which are large media markets already (e.g. Germany, France, Italy, Spain, Japan), it plans to ensure growth at the rate of GDP.

	07	06
Global Channels	169.0	166.1
Global TV Sales	216.4	188.9
Content and Production	52.9	36.1
Magazines	171.3	171.8
Home Entertainment	186.9	208.9
Digital Media	13.9	13.3
Total	810.4	785.1

	07	06
Global Channels	20.9	6.9
Global TV Sales	40.2	33.7
Content and Production	9.5	3.2
Magazines	20.0	19.5
Home Entertainment	24.4	27.7
Digital Media	(3.9)	(1.6)
Total	111.1	89.4