Dave broadcaster UKTV takes profits hit on programming investment

He added that so far in 2014, UKTV ratings are up a further 17pc, likely to increase its share of commercial impacts again.

UKTV is investing more in original commissioning, in a gradual move beyond its core offering of repeats of BBC hits such as Top Gear and American imports such as the reality show Storage Hunters. It spent £125m on programming them last year, up from £75m in 2012. Further increases are planned.

The strategy is in part driven by UKTV’s desire to tap into the lucrative international content market. ITV has followed a similar path in recent years by acquiring production companies so it can sell broadcast rights in multiple territories and become less reliant on the volatile advertising market.

Mr Childs said: “We are becoming an increasingly significant investor in UK creativity. Investment is key to our future growth.

“These results show that the more we put in, the more we get out, and I am delighted that so many of our original programmes are amongst our top titles and selling so well internationally.”

UKTV’s biggest original hit of the year at home was the third series of Dynamo: Magician Impossible, which attracted 1.2 million viewers per episode.

Toby Syfret, a television specialist at Enders Analysis, said: “UKTV’s growth has been continuous over ten years. They’ve got a good mix of programming, very distinctive channel brands and they’ve been canny getting good positions in electronic programming guides.

“One of the difficulties in the digital age will be keeping those channel personalities but there are opportunities too and they are closing in on Channel 5 and Sky in terms of share.”

“It’s at a stage where they could invest significantly in programming to get to the next level.”

The success of UKTV amid a strong appetite among media groups for television assets led Scripps to offer BBC Worldwide, the publicly-owned broadcaster’s commercial arm, around £500m for its stake earlier this year. The BBC rebuffed the offer and said it had no plans to sell.

more