BSkyB reports solid first quarter as existing subscribers take additional services

19 Oct 2011

Alternative British fixed line voice and broadband provider BSkyB has reported solid growth in both turnover and operating profit in the three months ended 30 September 2011, with the company noting that increased sales of additional products to existing subscribers had contributed to its results. In the three months ended 30 September 2011 BSkyB reported revenues of GBP1.657 billion (USD2.608 billion), up 9% against the GBP1.526 billion it reported in the same period a year earlier. Adjusted operating profit for the quarter meanwhile stood at GBP295 million, representing a 16% year-on-year increase, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the period was GBP381 million compared to GBP335 million in the operator’s first fiscal quarter of 2011.

In operational terms, at the end of September 2011 BSkyB reported a total broadband subscriber base of 3.485 million, up from 2.802 million a year earlier, while the number of customers taking the operator’s fixed line voice rental service stood at 2.892 million compared to 1.946 million at end-September 2010. The operator also noted that 2.9 million of its subscribers were now signed up to all three of its pay-TV, broadband and telephony services, up 29% y-o-y. Average revenue per user meanwhile continued to increase, standing at GBP535 per year, up by GBP25 from GBP510, with the operator noting that the driver for this increase was the ‘greater average number of products taken by (its) customers with growth in each of the TV and home communication related elements.’

Commenting on the results, Jeremy Darroch, BSkyB chief executive, said: ‘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, earnings per share (EPS) and free cash flow.’

United Kingdom, Sky