BSkyB added 150,000 subscribers to its digital satellite service in the third quarter of its financial year, beating the consensus expectations.
Analysts had predicted that there would be between 137,000 (Merrill Lynch) and 153,000 (Morgan Stanley), with Lehman Brothers forecasting 145,000. The group now has 6.7 million satellite customers and is on schedule to hit its target of 7 million subs by the year-end.
Churn – the proportion of customers leaving the service – fell to a record low of just 9.3%, despite the introduction of price increases during the period. Average revenue per user (ARPU) rose by 7% to £364 per year.
Pre-tax profits at the group reached £65.8 million, ahead of Merrill Lynch’s forecast of £49.5 million. Revenues were also ahead of expectations at £838.1 million. Merrill had forecast £799 million and Lehman Brothers £800 million.
Advertising revenues at Sky were also healthy, up by 15% to £204 million in the nine months to 31 March. Operating profits rose by 96% to £254 million.
Commenting on the results, chief executive Tony Ball said: “We are reporting another strong set of results today. In what is normally a quiet period we have delivered healthy subscriber growth and an operating profit which has almost doubled year on year, thanks to strong revenue growth and sustained cost control. We remain on track to hit all of our targets.”
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