REG - ITV PLC - ITV Sells its 50% Share of BritBox International

ITVAnnouncement

01/03/2024 07:00

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RNS Number : 2264F  ITV PLC  01 March 2024

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

 

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