19 Entertainment has reported a strong 37% increase in adjusted operating profit for 2008 fuelled by American Idol, the Spice Girls reunion tour and managing David Beckham's business interests.The firm, sold by Simon Fuller to US entertainment giant CKX for £75m in 2005, had an adjusted operating profit of $92.5m (£66m) in 2008, up from $67.4m (£48.4m) the year before.
About 75% of last year's profits came from 19 Entertainment's TV, live and recorded music operations. The company's TV properties include the American Idol and So You Think You Can Dance franchises and Little Britain USA.
19's live music business includes income from tours by the Spice Girls, Carrie Underwood and Chris Daughtry. Recorded music income includes Katy Perry's mega hit I Kissed a Girl, written by Cathy Dennis, as well as albums by Will Young, Underwood and American Idol winner David Cook.
About 25% of 19 Entertainment's adjusted operating profit comes from its sport and fashion businesses. The management of a range of David and Victoria Beckham's business interests, including jeans and fragrances through Coty, accounted for about $3m of operating profit. 19 Entertainment also manages the commercial interests of other talent such as Claudia Schiffer.
The firm's adjusted operating profit takes into account income before depreciation, amortisation, non-cash charges and foreign exchange gains.
CKX said the growth across its operations as a whole – it also owns the rights to exploit the Elvis Presley and Muhammad Ali brands commercially – were attributable to the 19 Entertainment operation.
19 Entertainment provided the vast majority of the total adjusted operating profits of CKX, which overall reported a 45.1% increase year-on-year to $96.7m (£69m). CKX's unadjusted operating profit fell by 13.6% year-on-year to $36.9m (£26.3m).
Fuller's operation also recorded a solid year-on-year revenue increase of 15.9% to $223.6m (£159m), again the lion's share of the total $288m (£205m) of revenue reported by CKX. CKX's total revenues were up 8% year-on-year.
However, CKX's Presley business – the company owns an 85% stake in Elvis Presley Enterprises – recorded a 12.5% drop in revenue year-on-year and a 12.8% drop in adjusted operating profit.
The Muhammad Ali business – CKX took an 80% stake in the former boxer's rights in 2006 – also saw revenue decline by 34.5% year on year and adjusted operating profit fall by 63.8%.
"We are pleased to report significant growth in our 2008 revenue and [adjusted operating profit]," said Robert Sillerman, chairman and chief executive of CKX. "These exceptional results are a testament to the strength of our underlying brands including American Idol and Elvis Presley.
"With several new initiatives already underway and planned the outlook for 2009 and 2010 continues to be extremely positive."
Last month ITV announced a deal with 19 Entertainment to make six new TV shows.
