Q3 results from BSkyB released today reveal revenue increases of 24% and net subscriber growth of 190,000 bringing BSkyB’s DTH subscriber total to 5.49 million.
Pre-tax losses for the period fell to £89 million compared with £123 million for the same period last year. Turnover rose 23% to £642.7m (from £520.3m) and earnings before interest, tax, depreciation and amortisation increased to £64.5m from £48.9m.
The company reported an 8% increase in average revenue per user (ARPU) to £317 bringing it closer to its 2005 target of £400. Interactive ARPU was £13, an increase of 44% on the comparable period, this was largely due to telephone betting, the internet and iTV revenues.
BSkyB’s 22% stake in Kirch, for which the company paid £312 million last year, cost BSkyB £29 million in the three months to September. BSkyB have a ‘put’ option to sell their stake back to Kirch if the company underperforms however, in its statement this morning BSkyB said that “there is no certainty that the resources of Kirch Holding will be sufficient to satisfy the put option if exercised.”
BSkyB lost 77,000 subscribers when it switched off its analogue signal earlier this year and digital churn for the year rose from 10% to 10.4%. Still, total subscribers rose by 190,000 to 4.49 million.
Tony Ball, chief executive of BSkyB, said: “We have achieved our goal of becoming a fully digital service. Sky continues to attract high quality subscribers and to deliver strong revenue and profit growth despite the difficult advertising market. This is the sixth successive quarter in which we have increased year on year profitability and we remain on track to deliver positive free cashflow for the second half of the financial year.”
By 11.30am shares in BSkyB had risen from 764p to 790p.
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