BBCCommercial, the commercial arm of the U.K. public broadcaster that is mainly driven by BBC Studios, reported lower full fiscal-year financials on Tuesday, driven by softness in the commissioning and advertising sales markets, year-ago revenue benefits from multi-year deals, and what it called record investment to transform the business and ensure future growth. However, despite very challenging market conditions, the company also touted strong underlying trends and successes, including its Doctor Who partnership with Disney+, and the rising popularity and increased consumer products sales of animated kids and family hit show Bluey. The last financial year saw good progress against our strategic objectives through record investment in content, premium digital services and select international production companies, said Tom Fussell, CEO of BBC Commercial in a statement. Despite the challenging external environment, we saw good underlying growth, and our long-term ambition to double the 2022 business remains. Indeed, his team continues to target doubling its 2021/2022 revenue and profit by 2027/2028.

Asked about the commissioning market softness, Fussell pointed to the increased profitability focus across Hollywood and streaming giants as the key driver. The Hollywood labor strikes may have caused delays in show orders, but didnt move the needle in terms of industry players bottom-line focus. Content budgets have come down, he told THR. The strikes didnt change that.

BBC Commercial, which supports the BBC by generating income for the broader BBC Group, said that BBC Studios made record levels of investment in content in the most recent fiscal year, which ended in March. It also made a series of key strategic investments, most notably taking full ownership of profitable and fast-growing Britbox International, expanding its international production footprint with new acquisitions in Scandinavia, in Spain and in Australia, both completed and announced in the year, and, as signaled in last years annual report, enhancements to digital services BBC.com and UKTV Play.

BBC Studios Global Media Streaming unit is the new home for BritBox International, with 3.8 million subscribers and growing at a rate of 25 percent year, BBC Commercial highlighted.

In its annual report, the company also put the spotlight on the success of key brands. Blueys popularity soared globally as it became the second most streamed U.S. show in any genre in 2023 according to Nielsen data, with the award-winning childrens brand reaching audiences in 140 territories amidst the launch of a game, immersive experiences, books and other merchandise, boosting sales for consumer products, the report highlighted.

Meanwhile, its Doctor Who franchise celebrated its 60th anniversary with three Christmas specials and the introduction of a new Doctor in Ncuti Gatwa as the series debuted on Disney+.

Other content highlights for the latest fiscal year include Planet Earth III, The Famous Five, The 1% Club, Einstein and the Bomb, Eurovision, a second season of Time, and the coronation of King Charles III.

Alongside the growth of its free streaming service, the UKTV network put in a strong performance, increasing its share of the commercial audience in a soft advertising market, whilst the number of international ad-funded (FAST) channels reached 36, including the BBC News Channel for the first time, the report also noted.

Overall, BBC Commercial reported fiscal year 2023/2024 revenue, or sales, of 1.9 billion ($2.5 billion) dropped 10 percent from 2.1 billion in the previous year. Its profit, as measured in earnings before interest, taxes, depreciation and amortization (EBITDA), declined 21 percent to 199 million ($258 million) from 252 million.

Looking ahead, the annual report noted that the external trading conditions continue to be challenging, in part due to slower commissioning demand and ongoing uncertainty in the advertising markets.

Upcoming content highlights that it cited include Asia, telling the story of the biggest continent on Earth through its wildlife and landscapes, as well as Solar System, made by the Science Unit in a co-production with PBS, shedding light on the latest knowledge about the planets and moons orbiting around Earth.

Baby Reindeer, the hit show that launched on Netflix in April, after the end of the fiscal year, and that just garnered 11 Emmy nominations, along with other newer fare also got a shoutout here.

In scripted, BBC Studios Production label Firebird Pictures made The Jetty, a new thriller from writer Cat Jones starring Jenna Coleman, whilst Clerkenwell Films, also a production label, made the successful

Baby Reindeer for Netflix. Six-part mystery thriller series A Good Girls Guide to Murder, made by BBC Studios invested indie Moonage and based on Holly Jacksons young adult novels, aired on BBC Three and Netflix after year end. BBC Studios Drama Productions label River Pictures brings Kidnapped: The Chloe Ayling Story, a six-part factual drama written by Killing Eves Georgia Lester to the screen, that follows the true story of Chloes abduction in Italy in 2017. Ayling was known as a Britishpage 3 newspaper model.