BSkyB adds 80,000 new customers despite downturn

BSkyB has reported a 7% year on year increase in adjusted revenues to £3.96 billion for the nine months ending March 31, helped by the addition of 80,000 new customers in the first quarter.

The satellite broadcaster’s pre-tax profit for the period hit £339 million, up from £20 million in 2008, although profits were slightly distorted by impairment charges of £474 million, which were mainly connected with the reduction in the value of Sky’s ITV stake.

However, despite this, Sky’s third quarter revenues increased from £1.25 billion to £1.39 billion, while pre-tax profits rose from £56 million to £63 million.

Rupert Murdoch’s company managed to buck the economic gloom by adding 80,000 new customers to its subscriber base in the three months to the end of March.

BSkyB also persuaded 243,000 of its customers to take up its HD service after slashing the cost of a Sky+HD box to just £49 – the broadcaster now has more than 1 million households with its HD television service.

In total, Sky now reaches more than 9.3 million homes, with 15% of them taking up all three of its services – TV, broadband and home telephony, up from 9% a year ago.

Earlier this year, Sky pulled out of talks to buy rival internet service provider Tiscali’s UK business, which would have made it the number three in the market behind Virgin Media and BT.

In a statement, Sky’s chief executive Jeremy Darroch, said: “We have made a strong start to calendar 2009. In difficult times, customers are making careful choices and responding to the combination of quality and value that we offer.

“In this environment, and at a time when people are spending more time at home, we will continue to provide our customers great entertainment and money-saving broadband and telephony.

“At the same time, we will stay focused on cost efficiency to allow us to invest sensibly in areas that drive long-term value for the business, such as high definition, with the objective of emerging stronger from the downturn.”

However, he added: “Looking ahead … we expect conditions to remain challenging.”

Sky’s share price gained 6.3% to 494.5p in early trading this morning.