Revenues Up, Profit Down, at Sky

LONDON, July 27: British Sky Broadcasting’s revenues for the year ended June 30, 2007, were up 10 percent to £4.55 billion, but the platform’s net profit dropped from £551 million to £499 million.

The company hailed its subscriber gains, with 1.446 million new additions and net growth of 406,000, ending the period at 8.58 million. Sky+ DVR homes delivered record growth of 821,000 to 2.37 million, a 28-percent penetration. HD customers rose from 244,000 to 292,000. Sky Broadband customers were up by 259,000 to 716,000, and Sky Talk’s base rose by 342,000 to 526,000. Churn fell from 13.7 percent to 12.1 percent, and ARPU rose from £406 to £412.

“This year has been one of enormous importance and change for us, with the launch of our broadband and talk services transforming our business and our future prospects fundamentally,” said James Murdoch, the chief executive of Sky. “This expanded product range is now attracting new customers to Sky at a very healthy pace, as well as deepening our relationships with existing customers.”