UKTV FINANCIAL RESULTS FOR YEAR ENDED 31ST DECEMBER 2016
UKTV marks record revenue, profit and viewership with The Innovation Fund
Thursday 20th April 2017
- EBITDA growth of 11.3% to £91.3m, and revenue growth of 8% to £344.8m
- Over £150m invested in content and related launches, driving year-on-year growth in SOCI of 5.8%
- Increased investment in UKTV Originals, with new shows such as Davina (w/t), Porters and Murder on the Blackpool Express set to air this year
- New Channel 4 advertising sales deal increases value of scheduled television and on demand
- Continued expansion of UKTV Play with launches planned later this year on Sky and Now TV
- Launch of The Innovation Fund in 2017 to make a multi-million pound investment in high-growth potential businesses
Darren Childs, CEO, said,
UKTV is delivering well against its strategy, with record profit, revenue, and share of commercial linear and non-linear audiences. Over the last three years we have increased UKTV's profit by over a third, by investing smartly in UKTV Originals and making sure our shows are accessible to viewers on all major digital platforms. Looking ahead, I believe there is great headroom to continue to grow share in our channels' business, but we are also broadening our focus. We will capitalise on the growth of UKTV Originals and build original entertainment with shows such as Porters, Into The Fire, Murder on the Blackpool Express and a new primetime format for W hosted by Davina McCall. We will invest more in VOD because our new advertising deal makes investment in on demand services attractive. UKTV Play remains our fastest-growing and youngest brand - across content, marketing and increasing our capability to use data to better serve advertisers. Even during a turbulent year in the ad market, the business continues to deliver double digit profit growth. This strong performance has allowed us to invest in creative commissions but we want to do more. That's why in 2017 we are diversifying our business with the launch of The Innovation Fund. This is a significant move for UKTV, as we plan to make a multi-million pound investment in high-growth potential businesses, to generate new revenue streams.
In 2016, UKTV continued its trajectory of sustained growth against all financial metrics. Over the course of three years, revenues have grown by 24.1% (£277.8m to £344.8m) and EBITDA is up 35.5% (£67.4m to £91.3m). The strong financial performance has been driven by a consistent strategy of investment in UKTV's brands, in digital distribution, and programming including UKTV Originals, which is helping attract larger audiences to UKTV channels. UKTV has seen continued progress in 2016 across all areas of the business, including growth in its linear and on demand propositions.
THE INNOVATION FUND
UKTV has today announced plans to launch a multi-million pound Innovation Fund in 2017. Partnering with Channel 4's Commercial Growth Fund, The Innovation Fund is designed to unlock incremental revenue streams, enabling UKTV to invest in burgeoning high-growth companies across a variety of industries, obtaining equity stakes in businesses in return for advertising airtime on UKTV's network, and helping growing organisations enter the TV advertising market. The first deals are expected to be announced later in 2017.
UKTV's increased investment in programming and related launches of £151.2m in 2016 resulted in more original programming across the network, with double the number of UKTV Originals hours premiering in 2016 versus 2015. Commissioned content on Dave proved particularly popular with viewers; UKTV Originals made up eight out of the channel's top 10 titles - Live Boxing: David Haye v Mark de Mori, Red Dwarf XI, Live Boxing: David Haye v Arnold Gjergjaj, Taskmaster, Dave Gorman Modern Life is Goodish, Dara O Briain's Go 8 Bit, Celebrity Storage Hunters and Zapped.
The network is planning to increase its original entertainment hours this year with more brand new formats and shows in the pipeline, including:
- Davina w/t (8x60', TwentyTwenty) - a primetime series for premium entertainment channel W, presented by Davina McCall. Davina will lead a thought-provoking exploration of a different contemporary issue each week, sparked by real people's experiences and viewpoints
- Porters (3x40', Dancing Ledge Productions) - scripted comedy for Dave set in the world of hospital porters and written by Dan Sefton, the creator of Delicious and The Good Karma Hospital
- Murder on the Blackpool Express (2x60', Tiger Aspect / Shiny Button Productions) - scripted two-part comedy drama for Gold set on a guided tour coach trip to Blackpool, blending humour and classic murder mystery
- Into The Fire w/t (20x60', IMG Media) - fly-on-the-wall series for Really featuring the West Midlands Fire Service, whose firefighters have been equipped with revolutionary helmet cameras which will provide viewers with a unique perspective right into the heart of a fire.
UKTV's homegrown content has claimed critical success as well as ratings, helping propel Dave to Best Entertainment Channel at the 2016 Broadcast Digital Awards and securing the network's first International Emmy for Hoff The Record. UKTV's ongoing commitment to increase investment in original shows will see the broadcaster bring back 16 returning UKTV Original series in 2017 for subsequent seasons - including the award-winning series Taskmaster, Red Dwarf and Zapped. This is double the number of returning series on the network from 2014 to 2015.
GROWTH IN LINEAR AND ON DEMAND
UKTV's diverse programme mix of channel-defining original programmes, premiere acquisitions and the BBC's finest shows drove record growth of the network in 2016, with UKTV's year-end share of commercial impacts (SOCI) of 9.85%.
[SOCI measured by full year 2016 BARB data delivered by DDS]
In 2016 Dave and Drama retained their positions as the top two non-PSB channels in the UK, with Drama growing its share of viewing by 27% through the popularity of classic BBC titles including Death in Paradise and Inspector George Gently.
UKTV's new premium entertainment channel W also grew viewing through hit original shows such as John Bishop: In Conversation With... and increased viewership amongst its target female audience by almost a fifth.
UKTV Play, UKTV's video on demand service, is the fastest growing part of the business, driven by the continued expansion of the service onto new platforms and devices and growing brand awareness. So far in 2017 the service has grown direct-to-consumer views by 51% year-on-year. Recently UKTV unveiled a major update of UKTV's Play on demand mobile app, available free on iOS and Android, featuring enhanced personalisation, a slick new interface and an extended selection of box sets.
Later this year, Sky customers can watch catch-up on demand content from all of UKTV's channels via a dedicated UKTV Play area on Sky Q, Sky+, Sky Go and Sky Q app. This will give viewers access to thousands more hours of UKTV's catch-up programmes and box sets. UKTV will also launch its UKTV Play app on Now TV boxes later in 2017.
Key developments announced to date in 2017 include:
- Extension of agreement with 4 Sales to remain the exclusive advertising representative for the UKTV portfolio
- UKTV Originals talent in 2017 includes Davina McCall, Sir David Attenborough, Dara O Briain, John Bishop, Dr Christian Jessen, Greg Davies, Alex Horne, Dave Gorman, James Buckley, Sharon Rooney, Noel Fielding, Mel Giedroyc, Lolly Adefope, Hugh Dennis
- Expansion of UKTV's creative facilities to open an in-house full service Creative Shop
- More brand new UKTV Originals set to air this year including Porters, Into The Fire, Davina (w/t) and Murder on the Blackpool Express
For further information:
Teneo Blue Rubicon - 020 7260 2700
Simon Pritchett/Haya Herbert-Burns/Camilla Cunningham
All data BARB Adults 16+ Top performing programme lists are consolidated viewing. BARB consolidated ratings includes catch-up, or time-shifted, viewing that happened up to seven days after the original broadcast.
SOCI figure is 2016 year-end based on BARB data delivered via DDS.
UKTV Play views increase is Jan-Mar 2017 vs Jan-Mar 2016 (D2C).
UKTV is a commercial broadcaster reaching over 41m viewers every month.
The award-winning independent has eleven imaginative brands - UKTV Play, Dave, W, Gold, Alibi, Yesterday, Drama, Really, Home, Eden and Good Food. These include the two most popular non-PSB channels in the UK and account for nearly 10% of the British commercial TV market. The company's most recent financial results showed record-breaking year-end revenue of £344.8m and EBITDA of £91.3m. It invested £151.2m in programming and related launches last year, and is a significant investor in British creativity.
The network embraces technology to deliver inspired channels to audiences through Freeview, Sky, Virgin Media, BT, TalkTalk, YouView, Freesat, Amazon Fire and UKTV Play, and distributes its highly valued original programmes to 200 territories.
Now celebrating over 20 years at the forefront of digital television, UKTV - an independent commercial joint venture between BBC Worldwide and Scripps Networks Interactive, Inc. (SNI) - is proud to be the first British television broadcaster in The Sunday Times top 100 companies list.