BSkyB Doubles Profit As 7m Subs Target Is Hit
BSkyB gained 170,000 new subscribers to its digital satellite service during the last three months, the first quarter of its financial year. The company this morning confirmed that it has achieved its target of securing 7 million customers by the end of 2003, three months ahead of schedule (see BSkyB Reaches Subscriber Target Ahead Of Schedule).
Advertising revenues were up by 7% year on year to £64 million. Sky says that this reflects its continued outperformance compared with the UK advertising market as a whole, which is estimated to have declined by 2% during the quarter. Interactive revenues were £75 million for the quarter, an increase of 70% on last year.
The Sky+ PVR By the end of September there were 121,000 subscribers to the company’s personal video recorder service Sky+. BSkyB is hoping that through a series of promotions and a marketing campaign, take-up of Sky+ will be boosted. The average number of daily bookings has already significantly increased over the quarter, the company said.
BSkyB has just appointed James Murdoch, son of Rupert, as its new chief executive, not without causing some rancour with investors (see BSkyB Coronation Could Cause Disruption, Says Merrill Lynch). Commenting on today’s results Murdoch Jnr said:
“The current financial year has started well and we continue to grow both subscribers and revenues. In particular, the most significant achievements are the doubling of operating profit and the considerable increase in profit margin.”
Shares in BSkyB were down by 1.2% at 676.5p by 11.00am today.
