Carnival Films, the production company behind popular shows like Downton Abbey, has reported a decline in earnings for 2023. The company’s income from its back catalogue has fallen, leading to a significant drop in revenue.
According to newly filed accounts with Companies House, Carnival Films recorded a turnover of £43 million for the latest financial year, down from £50.3 million in 2022. Pre-tax profit also decreased from £9.9 million to £7.3 million during the same period.
The London-based company is known for producing not only Downton Abbey but also The Hollow Crown, Hotel Babylon, and Agatha Christie’s Poirot. Carnival Films attributed the drop in turnover to a “reduction in royalties from the distribution of new and existing titles.” However, the company noted an improvement in its gross margin, which increased from 40% to 54%, thanks to better margins from existing titles.
As a result of the earnings dip, the directors have decided not to recommend a dividend for 2023. In 2022, the company paid out £15 million in dividends.
In terms of geographical performance, Carnival Films generated £21.8 million from the UK in 2023, a decrease from £29.6 million. Conversely, sales in the USA increased slightly from £20.7 million to £21.1 million.
Carnival Films has been owned by NBCUniversal, which is ultimately controlled by Comcast, since 2008. The company was acquired for £30 million from the Australian firm Southern Star. At the time of the acquisition, its major hits included Harley Street and Hotel Babylon, along with earlier productions like Poirot, Jeeves and Wooster, and Rosemary and Thyme.
As Carnival Films prepares for the release of its third Downton Abbey film, the company faces challenges in maintaining its financial performance amidst changing market conditions.
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