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), 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 the 100 Best Companies To Work For by than anybody else in the market and this scheduled for later this year and next. , 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 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 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 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

“’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,

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... Red Top, in which a stellar bold and exciting cast, led by Maxine Peake, told their RICHARD WATSHAM opportunities to version of the phone tapping scandal. DIRECTOR OF challenge people’s COMMISSIONINIG perception of our Meanwhile live on Dave, David Haye’s network. comeback fight gathered rave reviews for the quality of production and attracted a Audiences are increasingly associating record audience of over 3 million. This is us with British originations and proof that there are big audiences to be INVESTMENT IN ALL PROGRAMMING high quality content. We’ve done had for event TV which will continue to AND RELATED LAUNCHES (£M) this by cultivating relationships with be important in 2016. exceptional talent on and off camera and collaborating to bring their brave and unusual ideas to air. As word spreads, producers are increasingly 148 bringing us their best ideas first. 125 123

2013 2014 2015

10 | UKTV Financial Report 2015 | Matt Lucas – Bull UKTV Financial Report 2015 | 11 UKTV: AVAILABLE EVERYWHERE

Linear TV is in rude 2015 we made great strides in this area health – in fact UKTV by launching on android and making the SERVICE ACTIVE UKTV PLAY & VOD SERVICES has enjoyed a 30% service available on BT, Amazon Fire TV PLANNED Q2 2016 uplift in viewing and Fire TV Stick. share to our linear channels since 2010 – UKTV Play’s new visibility in the market but it can’t be denied drove half a million downloads of its iOS that viewers also and android apps last year, contributing to enjoy long form, on a 26% increase in views. Viewers can now demand viewing, and watch our programmes on all it is on the increase. major platforms, with the service also set to That’s why over the launch on Freeview Play next month. SIMON BROWN past three years EXECUTIVE DIRECTOR we’ve invested in Our focus in 2016 is to continue developing OF STRATEGY, RESEARCH our VOD services brand awareness. We added Drama & REGULATORY AFFAIRS and launched UKTV to our direct-to-consumer service last Play as a quality year and we will increase the breadth of destination where viewers can watch offering on UKTV Play this year, with 35 programmes from across the network. even more premiere content and exciting functionality. Since launch, our aim has been to make UKTV Play available on as many

(MILLIONS) platforms and devices as possible. In

19 18 16 13

7 6 5 3 2 2 1 0.6 UK OWNERSHIP UK OWNERSHIP

12 | UKTV Financial Report 2015 | Crackanory, in partnership with Audible UKTV Financial Report 2015 | 13 BRINGING THE BRIGHTEST TO THE BUSINESS

“When I applied to be UKTV stands out This year we’ve committed to double an apprentice at UKTV, I in the industry as the number of apprentices, creating new had virtually no previous a place for brilliant openings in areas where we would like experience. However, I was talent. Wherever we to develop grass roots talent, including interested in marketing and find gifted people Technology, Operations and Digital. that share our values had a passion for TV, so to we will invest in UKTV has a modestly good track record gain hands-on experience them, their ideas and in recruiting colleagues from Black, Asian at a big broadcaster was their career. and Minority Ethnic Backgrounds (16% a fantastic opportunity. against the TV industry average of 8.6%) Throughout my 18 month We believe for TV and a high female to male split. In senior apprenticeship I received to prosper it needs management, 58% are women. lots of training and CLAIRE ASTLEY to be inclusive support, and got to work HR DIRECTOR and attract people Increasing the diversity of our team is on some really exciting, from diverse driving the growth of our business – a high-profile campaigns. backgrounds. That is homogenous workforce can’t give us After completing why we have teamed up with Creative the creativity and ideas we need to keep my apprenticeship, Skillset to run Open Doors events for breathing new life into our channels and 16-24 year olds wanting to learn more keep viewers coming back. I interviewed for a about the television industry, and have permanent marketer role made a commitment that production Television viewers are diverse, so we at UKTV and got it, beating companies making programmes for should be too. external candidates. UKTV UKTV, will pay all staff – including is an incredibly creative runners – at least the minimum wage. place to work and I’m excited about building my We also run an award-nominated career here.” apprenticeship programme and last year two apprentices successfully secured permanent roles at UKTV.

CHARLIE GUY MARKETING ASSISTANT (FORMERLY MARKETING APPRENTICE)

14 | UKTV Financial Report 2015 UKTV Financial Report 2015 | 15 CULTURE OF INNOVATION

UKTV is committed to innovation and 2015 heralded the next phase in our ambitious growth strategy when we brought Creative Services in-house and opened our own state of the art production facility. The Mezz, located at our Hammersmith HQ, comprises a series of high-tech studios, voiceover booths and edit suites.

The new facility allows collaboration between talent and production staff early in the creative process, allowing us to take an imaginative and integrated approach to our marketing. The new facility also reduces our overall cost base meaning more money can be invested in to the promotion of our brands.

28 12 700 2,500 in the expanded team of brand new job roles pieces of navigational promos per year creatives/production staff created by the studio content per year

16 | UKTV Financial Report 2015 UKTV Financial Report 2015 | 17 SUPPORTING CHARITY AND THE COMMUNITY

“It has been our good fortune and an absolute pleasure to work with UKTV during 2015 as their nominated charity partner. The energy, dedication, support and selflessness displayed by everyone involved has been phenomenal. We are indebted to all at UKTV – thank you for choosing to help us. Your support is our springboard to secure fledgling GIST specific research projects such as the National GIST Tissue Bank and will help us to stimulate more vital GIST research infrastructure and research projects. On behalf of all GIST patients and GIST Support UK, a huge THANK YOU!” JAYNE BRESSINGTON GIST SUPPORT UK’S VICE CHAIR

UKTV is passionate about supporting throughout the year, helping to raise charities and sustainability through funds for the charity. our work and our time. Our Give.Help. Share project encourages everyone UKTV’s talented choir performs regularly to help out in the local community, at local community events and our people improve UKTV’s environmental impact dedicate time to mentoring in local and raise funds for our Charity of the comprehensive schools and reading with Year. In 2015, we voted to support GIST primary school children. This year, UKTV Support UK, a small charity which has expanded on these initiatives to team provides support to those affected up with The Media Trust to mentor young by a rare form of cancer. Over half of adults who would like to work in the UKTV’s workforce took part in a set creative industries. of gruelling challenges including: cycling over 300 miles from to Green initiatives are also important Versailles; jumping off the Orbit at the to everyone at UKTV and we have a home of the London 2012 Olympics; comprehensive recycling policy and walking across boiling hot coals; and encourage everyone to participate in a taking part in a 7.5km dragon boat cycle-to-work scheme. sprint race on The Thames. Our people also hosted quizzes and auctions

18 | UKTV Financial Report 2015 | UKTV colleagues UKTV Financial Report 2015 | 19 FUTURE GROWTH STRATEGY

Our record SOCI drove significant The cycle continues with increased 2016 ad revenue increases in 2015. revenues being used to further expand This was re-invested into new our original programme slate into live original commissions and premiere sports and event television. acquisitions further boosting 2015 SOCI up to the record level of 9.31%.

UKTV BELIEVES IN THE VIRTUOUS CIRCLE OF

INVESTMENT

REVENUE & AUDIENCE PROFIT SHARE

20 | UKTV Financial Report 2015 | UKTV Management Team UKTV Financial Report 2015 | 21 REDUCING THE IMPACT OF PRODUCTION IN SPACE (AND ON EARTH)

UKTV has two series of the Emmy- The Red Dwarf team are on track to receive winning Red Dwarf in production, with a three star accreditation and are taking the first to air this autumn on Dave. the green message to wider audiences The studio-based scripted comedy has by telling their sustainable story through completed six months of filming at the Green Dwarf DVD extras they are Pinewood Studios, before moving into producing. edit and SFX shoots.

UKTV is a full member of BAFTA’s Over 2,000 users albert consortium, a group of representing 360 companies broadcasters and production companies have signed up to albert. working to steer the TV industry towards an environmentally sustainable future. In 2015 the consortium A central component to the consortium’s footprinted 3,600 hours work is to create first-rate sustainable of content from 650 productions, a process measured by the productions. consortium’s environmental certification process, albert+. UKTV is using albert+ The average carbon on Red Dwarf, addressing emissions footprint from an hour’s reductions in lighting, transport and worth of TV production is material use by using a renewable power 12.9 tonnes CO₂. source, LED lighting and sustainably sourced timber for sets. According to Broadcast’s Indie Survey there are over 20,000 hours of original TV content produced annually. Assuming each hour creates 12.9 tonnes of CO₂, we’d need enough trees to fill the M25 to absorb this amount of carbon dioxide.

22 | UKTV Financial Report 2015 | Red Dwarf UKTV Financial Report 2015 | 23 Financial Report 2015

For further information please email pressoffice@.co.uk 2015You can also access the latest UKTV news and press releases as well as previous financial reports on our corporate site corporate.uktv.co.uk

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