1 March 2024
ITV Sells its 50% Share of
BritBox International to BBC Studios
ITV plc has today announced that it
has sold its entire 50% interest in digital subscription streaming
service BritBox International to its joint venture partner BBC
Studios for a cash consideration of £255 million. The transaction
will provide net proceeds including loan repayments and accrued
dividends and after tax of around £235 million.
The sale reflects ITV's strategy of
focusing on supercharging its UK advertiser-funded streaming
service, ITVX and growing its global Studios division. The
Board intends to return the entire net sale proceeds to
shareholders through a share buyback which it expects to launch
imminently after the full year results on 7 March.
Under the terms of the agreement, ITV
Studios will continue to receive an ongoing revenue stream from
BritBox International similar to current levels for the use of ITV
content under new extended licensing agreements. BritBox UK is
unaffected and will still feature BBC content as part of separate
long-term agreements.
Carolyn McCall, ITV CEO said:
"The sale of 50% of BritBox International means ITV is focused on
its core strategic goals of continuing to build on ITVX's success
and growing ITV Studios.
"I would like to thank the BritBox
International team for making the company such a success and
particularly CEO Reemah Sakaan for her leadership, drive and
vision."
Tom
Fussell, BBC Studios CEO said: "This
is an important acquisition for us. We are taking
full ownership of a successful,
growing service we know well and that fits with our
stated
ambition to double the size of our
business. Britbox International has British content at
its
heart and it generates and satisfies
demand for British shows outside the UK. We will
continue to make significant
investments in the future to deliver long term value to the
BBC.
"I'd like to thank Reemah for her
outstanding contribution to BritBox International, which
under her stewardship has seen
remarkable year-on-year growth."
Notes to editors:
● There is a c.£17
million loan from ITV plc to BritBox International Ltd and a
c.£1.6m loan from ITV plc to ITV SVOD Australia Pty Ltd which will
be repaid as part of the transaction.
● The Transaction
has been effected by ITV disposing of its 50% interests in BritBox
LLC, BB Rights LLC, Denipurna Limited and BritBox International
Limited and its 100% holding of ITV SVOD Australia Pty
Ltd.
● The Disposal
constitutes a Class 2 transaction pursuant to the UK Listing Rules.
For the purposes of the LR 10.4.1 R (Notification of class 2
transactions), during the 12 months to 30 June 2023
the BBI entities (BritBox LLC, BB Rights LLC, Denipurna Limited,
BritBox International Limited and ITV SVOD Australia Pty Ltd)
contributed £5 million in profit before tax. The value of
the gross assets the subject of the transaction is £113 million (as
recognised in ITV plc's unaudited accounts as at 30 June
2023).
For further enquiries please
contact:
Investor Relations
Pippa
Foulds
+44 7778
031097
Faye
Dipnarine
+44 2071
576581
Media Relations
Paul
Moore
+44 7860
794444
Laura
Wootton
+44 7917 862293
LEI for ITV plc -
ZLECI7ED2QMWFGYCXZ59
Website: www.itv.com; investor
information: www.itvplc.com