Comparison between initially forecast profit and estimated loss of the documentary “Banks – friend or foe?”.
| Description
| Revenue £’000
| Costs £’000
| Profit £’000
| Share of profit in operating profit from documentaries
| Share of profit in total operating profit
|
| Forecast 1 (positive)
|
|
|
| 4,85%
| 0,12%
|
| Forecast 2 (negative)
|
|
| -30
| 4,45%[3]
| 0,11%
|
Analysis of documentaries, their revenues and margins. Comparison between financial years 2011 and 2010.
|
| Year ended
30 September 2011
| Year ended
30 September 2010
| Dynamics
|
| Revenues, £’000
| 6,700
| 6,900
| -3%
|
| Operating profit, £’000
|
|
| -5%
|
| Margin %
| 9,9
| 10,1
| –
|
| Number of different types of programme
|
|
| +20%
|
| Total number of programmes completed
|
|
| +12,5%
|
| Total number of programme hours
| 36,4
| 32,1
| +13,4%
|
| Average commissioning revenue per hour
| 184,1
|
| -14,4%
|
| Share in total revenue for all genres
| 24,5%
| 35%
|
|
Analysis of the revenue of the documentary “Banks – friend or foe?”.
|
| Revenue
| Share in documentary revenue
| Share in total revenue from all genres
|
| “Banks – friend or foe?”
|
| 4,33%
| 1,06%
|
| Documentaries
|
| 100%
| 24,5%
|
| Total for all genres
|
| –
| 100%
|
| STRENGTHS
ü Fast growing company
ü Sustainable, experienced manager directors who create positive atmosphere of the company
ü Creativity and solid personal relationships with key members of staff
ü Outsourcing makes company flexible and open to new ideas
ü Experienced program maker
ü Large number of programs made every year
ü 4 genres of programs made
ü Sales of VYP internationally
ü Low fixed costs
ü Low gearing level
ü Excellent quality of the programmes for which VYP won several awards
ü Some outsourced companies work exclusively for VYP
| WEAKNESSES
ü Cash pressure for making new documentary program, lack of budget controls
ü Dependent on outsourced workers and facilities
ü Lack of builder’s crews
ü Required actors may not be immediately available
ü Dependent on broadcasting company
ü Conflict of interest between producer and programme director
|
| OPPORTUNITIES
ü Penetrating a new market of corporate advertising
ü To make new drama series, which will give 5 mln pounds of revenue to VYP
ü To have good margin and prospect of future sales of merchandising products
ü Using computer graphics will attract more viewers
ü Create innovative programmes which will attract target audiences
| THREATS
ü Delay funding for commissioned programs put VYP under cash flow pressure
ü Cost reduction affected the quality of finished programme
ü Broadcast companies reduce the level of commissioned revenue
ü Possible loss of the programme unless the conflict of interests between the programme director and producer is resolved
|
