RDF says Queengate ban will hurt revenues

by Daniel Farey-Jones, Brand Republic 31-Oct-07, 11:10

LONDON - TV production company RDF Media has warned its financial performance will be hit more than previously thought by the BBC's and ITV's decision to suspend new commissions, following the damaging controversy over 'A Year with the Queen'.

The commissioning bans were imposed in July after RDF's handling of a preview for 'A Year with the Queen' contributed to the BBC wrongly claiming the Queen had stormed out of a photo session with photographer Annie Leibovitz.

The media storm that ensued led to the top-level departures of Peter Fincham, BBC One controller, and Stephen Lambert, RDF Media chief creative officer.

ITV this month lifted its ban but RDF and BBC are still discussing the lifting of the corporation's ban. A decision on whether to broadcast 'A Year with the Queen' is yet to be made, RDF said.

In its interim results today, RDF reported adjusted pre-tax profits were down 27% year on year to £1.9m.

However, revenues were up 38% to £51.6m and US production revenues more than doubled.

David Frank, chief executive of RDF, said: "The recent suspension of commissioning imposed on RDF by the BBC and ITV lasted longer than we originally anticipated. As a result, the group will not make up sufficient ground to fulfil expectations for this year within its UK production division. However, a strong performance in the US will go some way to redress this."

RDF's share price was unchanged this morning at 195.5p.

Yesterday, RDF said its US division had been commissioned by Oxygen Network to produce six 30-minute episodes of RDF USA's 'Coolio and the Gang', a reality show that follows rap legend Coolio as he returns from life on the road and attempts to organise his domestic life.

Since its launch, RDF USA has sold and/or produced series such as 'Don't Forget the Lyrics' for Fox, 'Wife Swap' for ABC, 'Shaq's Big Challenge' again for ABC and 'How to Look Good Naked' for Lifetime.