BSkyB High Profits

British Sky Broadcasting Group PLC has published its interim results for the six months ending on December 31 1996. The Group’s profits rose 26% to £134 million in this period. Earnings per share have increased 27% to 7.1p. The interim dividend is up 10% to 2.75p.

Record subscriber growth in the final quarter of 1996 helped to boost profits. There are now more than 6 million subscribers in the UK and Eire. Advertising sales were also strong with revenues showing a 32% increase, well above the growth in subscriber volumes.

Programming costs did rise to £263 million, up 39% on the previous year. Operating cash flows were effected by the prepayment of £50 million for the Premier League contract and £347 million for new satellite lease contracts. Consequently net debt at the end of the period increased by £25.8 million to £648.8 million.

Sam Chisholm, Chief Executive and Managing Director of British Sky Broadcasting, said: “We have increased our profits whilst continuing to make substantial investments in strengthening BSkyB’s programming line up. BSkyB is now extremely well positioned to capitalise on the introduction of digital television and the significant benefits that will flow from this new technology.”

BSkyB also reported that its digital satellite television operation is still on schedule for an Autumn launch.

Shares in the company are currently up 9p to 609p.

Enquiries, David Bell, Lowe Bell Financial: 0171 353 9203