BSkyB Delivers Strong Profits

May 2, 2012 World Screen Top Stories
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LONDON: Adjusted operating profits at BSkyB grew 15 percent to £908 million ($1.5 billion) in the nine months ended March 31, on revenue that was up 5 percent to £5.1 billion ($8.2 billion).

Ad revenue was lower year-on-year by 4 percent, to £334 million.

Total quarterly net product growth rose from 904,000 to 27.7 million, with 78,000 new households in the quarter adding its services. This brings the company’s share up to 10.55 million customers.

Jeremy Darroch, the chief executive, commented: “We have made a good start to 2012. In what remains a tough economic environment, strong and consistent execution of our plan has delivered good growth across our product range. We have grown revenues by 5 percent while holding prices flat for customers and delivered a record nine-month operating profit of £908 million alongside 24-percent growth in earnings per share. The decision to focus our marketing on home communications has paid off with our fastest quarter of growth since launch and confirmation that Sky is now Britain’s favorite triple-play provider.

“More households are choosing Sky and taking more products from us because we’re constantly looking to improve the quality and value that we offer. Already in 2012, we’ve launched an entirely new channel dedicated to Formula 1, given millions of households access to a huge choice of on demand TV and made our market-leading broadband service even better with the launch of our fibre products and free out-of-home WiFi. Looking ahead, we will continue to improve our service for all Sky customers as we believe this is the best way to build a larger business and continue to increase returns for shareholders.”

The company also commented about Ofcom’s investigation of whether BSkyB is "fit and proper" to hold a broadcasting license. The response read: "The company is engaging with Ofcom in this process and continues to believe that it remains a fit and proper license holder, as demonstrated by its positive contribution to U.K. audiences, employment and the broader economy, as well as its strong record of regulatory compliance and high standards of governance."