BSkyB Subs To Grow 14% In Q2, Say Merrill Lynch Forecasts

The number of subscribers to BSkyB’s digital satellite service is set to grow by 14.3% year on year in the second quarter of 2003, according to operating forecasts by Merrill Lynch analysts.

Sky’s financial results are due for release on 14 February and the broker predicts that the total number of direct-to-home (DTH) customers will reach 6.5 million, up from 5.7 million in Q2 2002. The group is expected to hit 6.7 million customers by year-end 2003; Lehman Brothers has forecast 6.8 million for the full year.

Merrill Lynch also forecasts that Q2 earnings will rise by 146% to £63 million, whilst turnover grows by 14.5%. Average revenue per user (ARPU) is set to rise by 7.0%.

In the first quarter of BSkyB’s 2003 financial year, the group moved into profit, after benefiting substantially from the collapse of digital terrestrial operator, ITV Digital. The results were better than a lot of analysts had expected and Sky is now seen as by far the most dominant player in the UK’s pay-TV market, both financially and in terms of subscriber numbers.

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