BSkyB Enjoys Record Growth In Subscribers

BSkyB has announced a rise in half year revenues, with record growth in Sky+ and Multiroom households leading to a 16% year on year increase in operating profits for the satellite broadcasting company.

The company said that it added 215,000 net new customers over the Christmas period, up from 168,000 the previous year. Sky+ households increased by 254,000 in the quarter, while Multiroom households rose by 158,000 to 1,281,000.

Pre-tax profit rose to £390 million in the six months to the end of December from £343 million a year earlier. Revenue grew by 9% to £2.13 billion from £1.95 billion this time last year.

Operating profit increased to £414 million, a margin of 19%, while earnings per share rose by 17% to 14.9 pence.

Commenting on the results, James Murdoch, chief executive of BSkyB said: “The business is moving forward on all fronts, including strong growth in earnings and cash flow. In the last quarter, more customers joined Sky than at any time in the last three years. Now nearly one in three families chooses Sky.”

He continued: “This year, we’ll push the bar further with the launch of high-definition TV and our broadband service. We are well positioned to sustain our growth as existing and future customers tell us that Sky is the preferred brand for new entertainment and communications services.”

BSkyB warned however, that growth would be weighted to the second half of 2006, as the broadcaster comes under increasing pressure from cable TV, Freeview and telecoms companies for a slice of the home entertainments market.

The satellite company’s continued growth will be helped by the recent acquisition of telecoms firm EasyNet, with the deal allowing Sky to offer customers a ‘triple pay’ of services, including broadband, satellite television and fixed line phone services.

Murdoch added: “I can’t give any (detailed) guidance for 2006 but I do think it’s going to be strong in general with the second half of the year, a better time of year for us.”

The new subscriber levels put Sky on target to achieve its 2010 forecasts of 10 million DTH customers, with 25% penetration of Sky+ and 30% Multiroom penetration.

BskyB: 0207 705 3000 www.sky.com