The BBC has reported a "very strong" performance in TV licence sales during the recent World Cup, crediting a QR code promotion displayed during matches. This positive news, however, arrives amidst a significant financial challenge for the broadcaster.Over the past decade, the corporation's licence fee income has plummeted by more than £1 billion in real terms. The latest BBC annual report further highlighted this decline, revealing a loss of over half a million TV licences in the 2025/26 financial year alone. The annual cost for a colour television licence currently stands at £180, an increase implemented on 1 April.A TV licensing spokesperson said: “The summer campaign, including use of the QR code is ongoing, but initial signs suggest TV Licence sales have performed very strongly during the World Cup.“Major live sporting events typically drive an increase in sales activity. We will continue to do all we can to ensure people are properly licensed.“Audience behaviour and content consumption continue to change and it’s essential we agree a modernised funding model in Charter negotiations, so the BBC can continue to deliver for audiences in the future.”The TV licence fee will increase by £5.50 in April (Ben Whitley/PA) (PA Wire)While 94 per cent of adults use BBC services each month, fewer than 80 per cent of households contribute financially to the licence fee.Watch Apple TV+ free for 7 dayNew subscribers only. £9.99/mo. after free trial. Plan auto-renews until cancelled.Try for freeADVERTISEMENT. If you sign up to this service we will earn commission. This revenue helps to fund journalism across The Independent.Watch Apple TV+ free for 7 dayNew subscribers only. £9.99/mo. after free trial. Plan auto-renews until cancelled.Try for freeADVERTISEMENT. If you sign up to this service we will earn commission. This revenue helps to fund journalism across The Independent.BBC chairman Samir Shah previously said ahead of the release of the annual report that the corporation’s funding model meant it “cannot maintain its public service mission”.The annual report, published on 14 July, said the BBC’s financial outlook “deteriorated” in the second half of 2025.BBC TV licences fell by over half a million in a single year, with 23.3 million licences active, a decrease of 540,000, by the close of the 2025/2026 financial year, The drop is attributed to fewer households requiring a licence, as they no longer consume licensable content.Households declaring no need for a licence simultaneously rose by 62,000, reaching 3.7 million.This decline follows 23.8 million licences being in force the previous year. Overall, the number has fallen by more than 2.5 million since the decade began, when it stood at 25.9 million.