BSkyB's profit dips 6%

2 May 2007

British Sky Broadcasting Group (BSkyB), the UK satellite pay-TV company, has posted a 6% fall in 3Q net income for the period ended 31 March 2007 to GBP142 million (USD284 million), from GBP151 million a year earlier. Sales at the company rose 8.7% to GBP1.16 billion.

BSkyB began offering its customers high speed internet access in August last year in a move designed to encourage customers to switch from rivals such as Virgin Media and BT. BSkyB added 264,000 net new broadband internet subscribers in the third quarter ended 31 March, taking its total to 457,000. Broadband is a key part of BSkyB’s strategy to attract customers and reach its forecast of ten million pay-TV customers by 2010, compared to the 8.4 million recorded at the end of March 2007. Chief Financial Officer Jeremy Darroch said BSkyB is a `bit ahead’ of its forecast of having 750,000 broadband customers by the end of the fiscal year (June). A total of 928 exchanges had been unbundled by the end of the quarter, a figure which had risen to 974 by the end of April, giving it coverage of 61% of UK households; 70% coverage is planned for June.

United Kingdom, Sky