BSkyB reports 11% revenue rise

BSkyB has reported an 11% increase in revenues to £5.9 billion in the three months to June. Its operating profits also rose, 10% year-on-year to £855 million.

The company announced 90,000 new customers, and is aiming to reach 10 million subscribers by the end of the year.

119,000 broadband customers were added in the quarter, bringing the total base to 2.6 million people. This is the first time its broadband operation has reached profitability since launching in 2005. 20% of customers now use a package of broadband, telephone and television; a 36% year-on-year rise.

BSkyB also announced 429,000 new subscriptions to its HD service in the second quarter, which is a 47% increase year-on-year. 30% of its 9.86 million customers are now Sky+HD subscribers.

However, BSkyB chief executive Jeremy Darroch warned that this growth in HD subscriptions will slow down: “There will be a pause for breath. We have had three quarters on the bounce where we have had more than 400,000 new sign-ups and we have reached 30% penetration ahead of schedule.”

The average revenue per user is now £508, which is a 9% increase, year-on-year. However, the rate at which customers leave to rivals has also increased, now at 10.5%.

“Strong customer demand is increasingly reflected in our financial results, with double-digit growth in each of revenue, operating profit and cash flow,” added Darroch. “It has been a good year for Sky but we stay focused on the challenge ahead. The economic outlook remains uncertain and, against that backdrop, we’ll pursue the consistent set of priorities that have served us well so far.”

This news follows BSkyB’s 10% revenue increase in the nine months to the end March, earlier this year.