Murdoch Predicts Strong Profit Growth For BSkyB

Chairman of British Sky Broadcasting, Rupert Murdoch, yesterday said that he expected the digital satellite group to deliver strong profits, despite the slowdown in subscription figures and the growing threat from Freeview.

Murdoch, who is BSkyB’s largest shareholder and also chairman of News Corporation, said the company could withstand competition from the BBC backed free-to-air multi-channel platform, Freeview and recapitalised cable rivals to win more customers.

According to today’s Financial Times, Murdoch said at a Goldman Sachs investor conference yesterday: “I cannot speak in front of the quarterly figures but [BSkyB] should assure everybody that there is an appropriate increase.” He also hopes that BSkyB can achieve a target of increasing total subscribers by 25% to 10 million in the medium term.

During the conference, Murdoch said that New Corporation, which owns a 35.4% share of BSkyB, would be tempted to consider a buy-out of the UK based company but he did warn that unfavourable currency issues would make the purchase price about $12 billion (£6.73 billion) too expensive for the group.

The chairman openly critisised the former BSkyB chief executive, Tony Ball, and his management team for dropping a volume-driven strategy in favour of ‘pushing for profit’. He added: “They turned down promotional efforts and turned up the price too much.” Ball was replaced last year by Murdoch’s son, James Murdoch.

BSkyB: 0207 705 3000 www.sky.com

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