BSkyB has reported healthy first quarter profits according to the company’s latest results for the three months ending 30 September.
The pay-TV provider added 46,000 net new TV customers and 75,000 new broadband customers, lifting adjusted operating profit by 11% to £316 million, slightly ahead of forecasts of £311 million.
A record 309,000 users also signed up to its mobile service Sky Go Extra, proving there is a growing appetite to watch content on the move.
The financial report is the last before the company cements its European expansion with the £4.9 billion purchase of Sky Deutschland and Sky Italia, with German state media giving clearances for the acquisition of 57.4% of Sky Deutschland last week.
“We have made a strong start to the year. After a year of investment, we are seeing the returns coming through with good top-line growth of 6% translating into an 11% increase in profits,” said Jeremy Darroch, chief executive.
“This strong financial performance was fuelled by continued operating momentum. We are seeing broad customer demand for our products whilst opening up new revenue opportunities. In all, we added 760,000 new paid-for products, 8% more than the previous quarter.
“The investments that we have made in new connected TV services are delivering growing benefits to our business. We extended our lead as the UK’s largest connected TV platform, surpassing six million connected homes.
“Sky Store more than doubled its revenues and our mobile TV service Sky Go Extra achieved a record quarter of growth. The benefits are clear as connected customers watch more TV, spend more with us and are more loyal.
“Three months into the year, we are delivering against a clear strategy for growth in our existing business. At the same time, we are making good progress with our proposed acquisition of Sky Italia and a majority stake in Sky Deutschland.”
