UKTV, the company behind channels such as Dave and Gold, has reported growing revenue and earnings, despite its performance being hit by advertising market struggles.
The broadcaster, which also has Alibi, Good Food and Drama in its stable of channels, has today reported a growing market share, with its share of commercial impacts (SOCI) figure jumping 5.8 per cent to 9.85.
Chief executive Darren Childs told City A.M. that revenue growth of eight per cent to £344.8m marked a “great achievement in what ended up being a turbulent year for the ad market”, which makes up around two-thirds of the company’s turnover.
Earnings before interest, taxation, depreciation and amortisation (Ebitda) for 2016 were £91.3m, up 11.3 per cent.
Childs added: “It was a year of two halves. There was a pre-Brexit year and there was a post-Brexit year, and the two were very different.
“If you go back to 2015, we were looking at… new money coming into the market at a rate of three-four per cent growth. As we started 2016, it was looking like the year could end up in a very similar place. That changed in June after the Brexit [vote], where basically the market slowed down… A lot of companies just started to hold back a little bit.”
Asked how 2017 had started, he added: “It’s down a little bit. I guess for the whole market it’s down a little bit. We are very focused on putting on share, so sometimes our numbers defy gravity, in terms of revenue growth.”
UKTV also today announced the launch of the Innovation Fund, which will partner with Channel 4’s Commercial Growth Fund to invest in TV industry startups.