2015Financial Report 2015 OUTSTANDING 2015 RESULTS Five years of exceptional In total, we put a record £148m into content We’ve added Drama to the service and growth in SOCI, ratings, and launches in 2015, over 20% more than launched on several platforms and devices, the previous year. We have delivered a including Android, BT TV, Amazon Fire revenue and profit deliver raft of hit UKTV originals such as Storage and Fire TV Stick. Last year, views to outstanding 2015 results Hunters UK Celebrity Special (our most UKTV Play’s direct to consumer services for UKTV. watched show of the year), Dave Gorman increased by 26% and more people are Modern Life is Goodish and Taskmaster. downloading the UKTV Play app than Enders Analysis said UKTV was “by Exclusive first run acquisitions such as ever before, with a 66% month-on-month far” the channel group of the year, and The Last Man On Earth, Grimm and Parks increase in downloads in December. With Broadcast called this our “watershed and Recreation, also added to the richness UKTV Play set to join Freeview Play, and year”. And our commercial success is of our popular entertainment brands. This more lifestyle content being added to the demonstrated in the numbers. In 2015, level of investment will increase further in service later this year, our shows will be DARREN CHILDS our revenues rose 13%, exceeding £300m 2016, with UKTV already enjoying a strong even more accessible to viewers in 2016. CHIEF EXECUTIVE for the first time, on the back of a ratings start to the year with over 3 million viewers performance that increased our share of tuning in live to watch David Haye’s We’ve got a lot to shout about, but my commercial impacts (SOCI) to make us comeback fight on Dave, followed by more favourite achievement of 2015 was the third largest commercial broadcaster brilliant event TV on W with Dynamo announced last month. UKTV was the in Britain*. In the past five years alone, Live at the O2. And there’s more to come first broadcaster ever to be listed as one of UKTV has achieved more SOCI growth with two brand new series of Red Dwarf the 100 Best Companies To Work For by than anybody else in the market and this scheduled for later this year and next. The Sunday Times, proving that however record growth has contributed to EBITDA fast we grow, we stay true to our values hitting an all-time high of £82m, an Dave and Drama are now the two top- of being creative while we work hard and increase of 22% in just two years. rating non-PSB channels in the UK, influence the industry around us to be contributing to UKTV’s 9.31% SOCI, a better, more inclusive place. We also UKTV’s growth has been driven by putting us ahead of Channel 5 and Sky’s increased our apprenticeships to help strategically positioning the business portfolios for the first time. We have provide industry access for young people, to capitalise on the buoyant advertising successfully moved the company from a but we know we can always do more. The market and the proliferation of new niche multichannel broadcaster to one that following pages offer a snapshot of the subscription and free distribution services. reaches terrestrial scales of viewing. story of UKTV and some of the 275 people We’ve also invested in UKTV original who have created its success. productions to support growth, and And we continue to evolve UKTV’s on enhance our rights to capitalise in new demand experience by investing in UKTV distribution channels. Play, our widely available VOD service. 2 | UKTV Financial Report 2015 | The Mezz Screening Room at UKTV 1 Year-end SOCI compared to other commercial broadcasters in Britain | UKTV Financial Report 2015 | 3 OUTPERFORMING THE COMPETITION “In the closing weeks of 2015 our SOCI was 9.27%. To give you a comparison, Sky’s wholly owned channels reached 9.25% and Channel 5’s portfolio hit 9.26%. It could hardly have been closer. And when the final week’s share scores came in, our investment and endeavour were rewarded. UKTV had reached 9.31%, and Channel 5 and Sky were on 9.27%. This year, we’re just as focused to build on 2015’s record SOCI with a brilliant raft of new shows including: original scripted comedy The Rebel, starring Simon Callow; compelling gaming format Go8Bit with Dara O Briain; and Emmy-winning Red Dwarf.” EMMA TENNANT CONTROLLER Our record SOCI performance spot behind Dave. And leading real-life represents 29% growth over five TV channel Really, saw a 13% year-on- years, fuelled by strong channel year increase, with Most Haunted Live performances. Dave continues to be driving the channel to its best ever daily the most watched non-PSB channel share at 1.27%. and reaches more 16-34 Men and ABC1 SOCI GROWTH Men than all Sky Sports channels With even more new and exclusive combined. Investment in Drama content planned in 2016, UKTV is well- helped increase its share of viewing by positioned to grow and exceed last year’s 24%, propelling the channel to second SOCI figure. 9.31 9.00 8% 7.97 8.23 7.19 7.28 6.92 6% 4% 2009 2010 2011 2012 2013 2014 2015 4 | UKTV Financial Report 2015 | Taskmaster UKTV Financial Report 2015 | 5 RECORD RESULTS “In 2015 we have continued our successful strategy of investing more in channels and content that people love to watch, increasing our share of viewing to record levels. This, alongside a buoyant TV advertising market, has helped UKTV deliver record revenues and profit. That means we can continue to build our services, diversify our content supply, and attract a stellar array of talent onto our programmes.” JAN GOOZE-ZIJL CFO & COO Our fantastic performance in 2015 • Broadening linear distribution by 2013 VS 2014 VS 2015 resulted in record revenues of launching Home in Freeview in £319m, with growth across all major March 2016 revenue sources and in particular, • Expanding our VOD services under the strong advertising income. Confident REVENUE (£M) UKTV Play brand expansion has enabled consistent, increasing investment in brand-defining • Investing in new content that will drive shows and launches, reaching a record growth by building our brands and 278 283 319 £148m in 2015. attracting more viewers 2013 2014 2015 On an EBITDA basis, profits rose 10.5% This virtuous circle of investing in to an all-time high of £82m as our people, content and distribution to grow previous years’ investment in content market share, driving increasing revenue 67.4 74.2 82.0 and distribution, coupled with strong and profit, is underpinned by a long- financial discipline, reaped reward. term strategic perspective, an efficient operating model and a culture of growth EBITDA (£M) Our outlook for 2016 is positive – the based on innovation. TV market is resilient and we will continue to build value through: 6 | UKTV Financial Report 2015 | Comic Strip Presents... Red Top UKTV Financial Report 2015 | 7 LET’S TALK ABOUT UKTV ORIGINALS “I’m eternally grateful to UKTV for giving me the chance to do a show that no other network would even consider! Ever. NO WAY. We see a new side to established talent and I’m delighted to be part of a show that’s giving new people a chance to shine. Dave rocks dude.” Alan Davies, Comedian Original programming defines our Our financial success and growth is channel brands, builds our reputation indelibly linked with our commitment to and fuels our growth. Last year UKTV’s original content. Four of our top 10 shows 20% investment increase in programme of 2015 were UKTV originals, with North content and launches allowed us to One’s Storage Hunters UK Celebrity experiment with our editorial mix across Special on Dave taking the crown for the the network and take more risks with network’s best performing show of the our UKTV originals, giving viewers an year, pulling in nearly a million viewers. array of entertaining shows that are completely unique to UKTV. In 2016 we have more exciting UKTV originals including: the highly-anticipated Successful collaboration with return of Red Dwarf; factual entertainment independent producers is vital in the format I’ve Got Something To Tell You, creation of compelling programmes. fronted by Amanda Holden; brand new In the 2015-16 Indie Survey conducted chat show John Bishop: In Conversation by Broadcast magazine, 100% of Indies With...; and Nev’s Indian Call Centre, who participated only had positive following larger-than-life boss Nev things to say about working with Wilshire and his band of key staff as they UKTV’s commissioning team. ‘They endeavour to expand their call centre value commissions’, ‘Experienced and business into India. approachable’, ‘They work well with our model and respond quickly’, and ‘Imaginative, brave and supportive’ are just a handful of the comments made. 8 | UKTV Financial Report 2015 | Alan Davies: As Yet Untitled UKTV Financial Report 2015 | 9 BUILDING REPUTATION THROUGH ORIGINATION We’ve seen We’re leading the way in comedy exceptional entertainment too with popular series like growth in the Dave Gorman Modern Life is Goodish, reputation and Alan Davies: As Yet Untitled and new hit, scope of UKTV’s Taskmaster. These shows helped Dave to originals. The its first nomination for channel of the year number of genres at the 2016 Broadcast Awards. we’re active in now includes scripted We’ve also enjoyed critical success this comedy and live year with Gold’s scripted satire Comic sport, as we seek Strip Presents..