BBC Worldwide has enjoyed a second consecutive year of record profitability, with pre-tax profit up 62% to £89.4m.

The corporation's commercial arm's improved profitability was helped by an 11% increase in revenues, to £784.4m, for the 12 months to March 31.

BBC Worldwide's strong results for 2005/06 come a year after the chief executive ,John Smith, unveiled plans to refocus the business more closely on increasing profits.

Mr Smith set a target of doubling profits in two years, from £37m in the 12 months to March 31 2004. In the event, pre-tax profit has nearly trebled in that period.

BBC Worldwide's results were boosted in particular by strong trading performances from its global channels, content and production, and home entertainment divisions.

Last year was also the first when more than 50% of BBC Worldwide's revenues came from overseas sales, excluding joint ventures and on a like-for-like basis.

"Our turnaround and repositioning strategy has enabled us to exceed our targets, streamline the business and prepare for significant growth both in the UK and abroad," Mr Smith said.

"2006/07 will see us deepen our commitment to digital media with the proposed development of the commercial iPlayer and bbc.com, the digitising of the archive and more video on demand deals.

"We will continue to invest in acquiring rights and maximising returns across all media. We will also be rolling out new channels and content and production strategies later this year."

The global channels division increased revenues by 18% year on year, to £165.4m. Pre-tax profit for the business was up 73%, from £4m to £6.9m.

Global channels operates 18 pay-TV services, including 10 in the domestic market as part of its UKTV joint venture with NTL, and overseas networks including BBC America and BBC Prime.

Content and production is a newly formed BBC Worldwide business focusing on selling BBC formats and making local versions of the resulting programmes for foreign broadcasters.

The division upped its revenues by 173% year on year, from £13.2m to £36.1m, while profit grew 220% from £1m to £3.2m.

Money-spinning BBC formats included Strictly Come Dancing, which has been sold to 27 countries, including the US, where the local version, Dancing with the Stars, has proved a hit for ABC.

BBC Worldwide's home entertainment business saw profits nearly triple from £8.7m to £25.8m, with revenues up 9% to £175.3m.

The home entertainment division's performance was boosted by the first full trading year of the BBC's joint venture with Woolworths, 2 entertain, which returned a profit of £25.8m on revenues of £115m, largely thanks to DVD sales.

Television sales is the division responsible for selling BBC programmes to overseas broadcasters and boosted its revenues 9% in 2005/06, to £158.8m. The division's pre-tax profit was up 3% year on year, to £31.7m.

Magazines, traditionally BBC Worldwide's biggest business, saw revenues dip 3%, from £169.4m to £163.7m.

The magazine division's profits were down 12% year on year, from £22m to £19.3m.

However, when one-off items including the sale of Eve magazine were taken into account, profits were actually up 2.5%, the BBC said.

BBC Worldwide's children's business reduced its loss from £6.6m to £900,000, with revenues up 26% to £37.7m.

Revenues at the outfit's digital media arm were flat at £33.1m, but the division turned in a £3.4m profit compared with a £4.8m loss the previous year.

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