BSkyB Hits Digital Target But Losses Grow

BSkyB had signed up 5.25 million digital customers by 6 February and had hit the 5 million mark by the end of last year, according to the satellite broadcaster’s interim financial results released this morning. This represents a record quarterly growth of 538,000 subscribers. However, whilst the company’s digital targets were achieved ahead of schedule, losses for the first half grew by more than 300% from £61.5 million to £260.2 million.

Revenues rose 28% period on period, up £236 million to £1,086 million. This increase was partially offset by a £214 million increase in costs to £1,035 million as the group invested in new subscribers and programming. Ad revenues rose by £20 million to £134 million, driven by a 5.1% point increase on Sky channels’ penetration in the UK.

Chief executive Tony Ball said: “The success of Sky Digital has been underlined by our record digital growth over the past six months and the early achievement of our target of 5 million DTH subscribers by the end of 2000. We are continuing to innovate with the launch of new interactive services that will increase our revenues and maintain low churn. Sky customers now benefit from the world’s most developed interactive television service.”

The results are more or less in line with analysts’ expectations, although losses were £20 million higher than predicted by ABN Amro due the timing of the consolidation of losses at interactive television company Open. Losses were also increased by investment in German company KirchPayTV, BSkyB said.

BSkyB: 020 7705 3000