BSkyB Profit Drops

LONDON, July 28: Full-year profit at British Sky
Broadcasting fell 5 percent to £551 million, the company said today, despite an
8-percent increase in revenues to £4.15 billion.

The company, however, remains bullish, noting a 389,000-subscriber
increase to 8.176 million, and a 75-percent increase in Sky+ DVR homes to 1.553
million, with a penetration of 19 percent. Further, multi-room households
increased by 62 percent to 1.047 million, for a 13-percent penetration. The
company says it is on track to reach more than 10 million customers in 2010.
Target multi-room penetration by then is 30 percent, and 25 percent for Sky+.

Chief Executive James
Murdoch noted, “Our industry is changing faster than ever before and for
Sky, 2006 has been an important and exciting year. The business and the team
have performed well delivering good levels of customer growth, in line with our
plans, and strong growth in both revenues and profitability. We have a clear
vision for the future growth and direction of our business and we feel
encouraged by the strong demand our customers show for new entertainment and
communications services. With a continued focus on providing more choice,
flexibility and control, we feel confident as we look ahead to the substantial
opportunity this market holds for us.”