Sky Revenue Up 11% Despite Missing Subscriber Target
BSkyB has this morning announced that revenue for its first financial quarter has increased by 11%, despite the group adding only 62,000 new subscribers during the three month period – once again failing to meet its target of 100,000 a quarter.
Earlier this week, City analysts predicted that Sky would add only 50,000 new digital subscribers from July to September, even though the group has made a bid to attract new customers by increasing its spending on advertising significantly.
During the quarter, total revenue climbed to £940 million, as operating profit before goodwill increased by 26% to £190 million and post-tax profit increased by 30% to £122 million.
According to this morning’s statement, Sky Active and SkyBet revenues increased by 8% to £52 million, spurred by the popularity of its interactive betting & gaming and casino. Other revenues increased by 23% year-on-year to £38 million, mainly due to the growth of set-top box revenues associated with the increase in Sky+ and multiroom sales.
During the period, total direct-to-home subscribers grew to 7.4 million, while Sky’s personal video recorder, Sky+, added a further 77,000 households taking the total to 474,000. The number of homes with Sky being received in more than one room also increased during the period, growing by 64,000 to 357,000.
Chief executive, James Murdoch said: “Sky achieved a solid set of results in the first quarter, with good sales and profit growth and we remain in a strong financial position. “Our second quarter has commenced in line with expectations as we begin the important run up to Christmas.”
It was also reported earlier this week that one-tenth of the group’s shareholders will vote against controversial share buy-back plans, which would see the company owned by Murdoch’s father, Rupert Murdoch, tighten its control over BSkyB.
BSkyB: 0207 705 3000 www.sky.com
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