BBC Worldwide to double profits by 2012

[BGonaSTICK]

The BBC's commercial arm, BBC Worldwide, hopes to double its profits in the next five years.

In an interview with the Financial Times, BBC WW's chief executive John Smith, said the company is aiming for a pre-tax profit of £200 million by 2012, by expanding its international and digital operations.

Smith said the growth would come from advertising on its international website, bbc.com, as well as the launch of 12 other advertiser-funded sites including those based on its most popular shows like Planet Earth..

Last month, the BBC Trust delayed its decision on whether to allow advertising on the international site, stating it needed time to gather further information.

The extra money will help the corporation supplement the licence fee, after the government gave it a lower-than-expected settlement, with the annual fee rising to £151 by 2012.

BBC Worldwide also wishes to expand its TV channels from 28 to 40. In January, it acquired a 25% stake in Australian TV production company Freehand Group.

Other revenue generators include further content licensing with other media operators, such as the deal announced last week with YouTube.