BBC Worldwide revenue hits £1bn

BBC Worldwide, the BBC's commercial arm, saw yearly revenue hit £1bn for the first time, but profit before tax fell because of two exceptional items.

In the year to 31 March, revenue rose 9.5%, while profits were £85.7m.

Profit fell after a write-down at Kangaroo, a planned online video service with ITV and Channel 4, which was blocked by the competition body.

A one-time charge with 2Entertain, its joint distribution arm with Woolworths, hit profits after the retailer folded.

Pension liability costs at its 2Entertain business dented BBC Worldwide profits.

Pre-tax profit declined to £85.7m from £117.7m in the same period a year earlier.

"We have continued to trade strongly in spite of some challenging market conditions," said John Smith, chief executive of BBC Worldwide.

He said trading conditions were likely to remain volatile for the rest of this year and into 2010.

"In spite of volatile conditions and heavy investment in several parts of the business, we remain encouraged by the growth prospects and performance of our core operations and brands around the world."

BBC Worldwide made more than half of its revenue from abroad, from just below half last year.

The aim is to generate two-thirds of revenue from abroad by 2012.

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