BSkyB Shows Good Growth In Q1, No Plans For Radio Or TV Expansion
BSkyB added 171,000 satellite subscribers to its service in the first quarter of 2002, bringing the total to 5.9 million, the company announced in its interim financial results this morning. Sky Digital is now by far the dominant digital, pay-TV operator in the UK in terms of subscriber numbers, following the close of ITV Digital recently (see Administrators Switch Off ITV Digital).
Cable revenues disappoint Wholesale revenues continued to disappoint as the number of cable subscribers declined in the quarter, said the statement. Over a nine month period, an increase in the average number of cable and digital terrestrial (DTT) subscribers was almost wholly offset by a decrease in the average number of premium channels taken by both cable and DTT subscribers. Consequently cable and DTT revenue increased by £2 million in the period to £221 million.
Advertising remains down The downturn in the advertising market persisted throughout the quarter, said Sky. Advertising revenue fell by 11% on the comparable period to £178 million. The outlook for May and June is for ad revenue to be flat.
The figures are ahead of analysts expectations, although by 9:45am stock was down 17½p at 724½p. This was mainly due to the bulk sale of 9.3 million shares at 733½p rather than an effect of the results, according to city reports.
No moves into radio or free-to-air television Chief executive Tony Ball is reported as this morning saying that BSkyB does not have any immediate plans to enter the UK radio or free-to-air television markets, as has been speculated.
The comments come after the release of details of the Government’s Communications Bill, which effectively paves the way for Sky to buy into Channel 5 or radio stations in the UK.
