Profit Up at BSkyB

LONDON: Pre-tax profit for the first quarter at BSkyB rose 33 percent on the year-ago period to £307 million, on revenues that were up 9 percent to £1.66 billion.

The U.K. pay-TV operator reported 10.4 million customers, which included 3.9 million HD subscribers. The number of new customers added during the quarter slowed to 77,000 from 96,000 in the same period last year, however, the annual average amount spent per subscriber increased by £4 to £543.

ARPU increased to £535, up 5 percent on the prior year. 

Programming costs increased by £53 million to £535 million, attributed to an expanded "depth and breadth" of offerings, the company said. Entertainment costs accounted for £26 million of the increase and included the investment in Sky Atlantic and additional British-commissioned content.

Jeremy Darroch, the chief executive, commented: “We continue to deliver strong financial results and good growth in customers and products. In tough market conditions, our move to more broadly based growth and multiple products is serving us well. New customers are choosing Sky over other providers, existing customers are taking more from us and our financial performance is accelerating, with another quarter of double-digit growth in operating profit, EPS and free cash flow.

“Looking ahead, the environment is likely to remain challenging as a result of the pressures facing consumers in the U.K. and Ireland. Our job is to give customers the quality and value they’re looking for, with a better choice of programs, more innovation and peace of mind with a price freeze for 12 months. In particular, customers can look forward to more outstanding TV as we step change our investment in new British comedy and drama, begin coverage of Formula 1 and continue to offer the best U.S. shows like Glee, Terra Nova and Boardwalk Empire.”