The BBC has posted a record income of £5.7 billion ($7.2 billion) for the 2022/23 period, up from £5.33 billion last year, but is in deficit by £120 million.
In the corporation’s annual report, which was published on Tuesday, it was revealed that the bulk of the income was from the license fee paid for by the public, which accounted for £3.74 billion, £60 million down from last year. The licence fee has been frozen for two years.
The BBC had a record commercial performance that contributed to 30% revenue growth, climbing from £1.5 billion to £1.9 billion. The corporation’s commercial arm BBC Studios delivered record-breaking results, achieving over £2 billion in sales for the first time, with profits of £240 million, up 6%.
However, this was offset by the increase in the group’s overall operating costs from £5.2 billion to £5.9 billion, which the BBC said was to “drive commercial growth and continued investment in content for audiences.” Consequently, after accounting for other income and expenditure, the corporation is in deficit to the tune of £120 million, compared to a £206 million surplus last year.
Cash reserves are down from £573 million to £338 million as the BBC draws on these to counter flat license free pricing and economic volatility.
In 2022, the BBC revealed deep cuts to its World Service output and this has resulted in a drop in global audiences. The World Service’s weekly audience was down 12% to 318 million.
Elsewhere, the BBC’s global weekly reach, including BBC News and BBC Studios, were down 9% to 447 million.
Internally, it was happier news for the corporation. For the first time there is now 50% representation of women in the BBC’s workforce and progress has been made in relation to Black and ethnic minority staff at 17%, disabled staff at 9.4% and 21% of the workforce are from low socio-economic backgrounds – all up on last year.
The report also reveals staff and presenter payments. Soccer pundit Gary Lineker, an outspoken critic of the malaise in contemporary U.K. society, remains the BBC’s highest paid presenter with £1.35 million annually.