BSkyB sees ‘record’ results as accesses climb following purchase of O2’s fixed line business

29 Jul 2013

UK triple-play provider BSkyB has reported what it said were ‘record results’ for the year ended 30 June 2013. In publishing details of its financial performance over the twelve month period BSkyB revealed that adjusted revenues had increased by 7% year-on-year to GBP7.235 billion (USD11.35 billion), as customer numbers for its fixed voice and broadband services continued to climb. Adjusted EBITDA for the period under review totalled GBP1.692 billion, up from GBP1.567 billion in the company’s previous fiscal year, while operating profit increased by 9% year-on-year to GBP1.330 billion.

In subscriber terms, the acquisition of the fixed line business belonging to UK mobile network operator O2 meant that BSkyB reported a significant increase in access in the last quarter of its financial year. To that end, as at 30 June 2013 the operator reported a broadband subscriber base of 4.906 million, up by just over 900,000 y-o-y, with it recording net additions of 519,000 in 4Q 2012/13 alone. Similarly, fixed voice and line rental products were also boosted on the back of the O2 fixed business purchase, with subscribers to those services rising by 733,000 (fixed voice) and 801,000 (line rental) over the year, respectively. At the end of the reporting period fixed voice customers numbered 4.501 million, with 4.364 million having signed up for BSkyB’s line rental option at that date. The operator, meanwhile, also highlighted the continued increase in the number of customers taking up its triple-play bundles, revealing that at the end of June 2013 35% of its customer base took all three of broadband, telephony and pay-TV, up from 32% a year earlier.

Commenting on the annual performance, Jeremy Darroch, BSkyB’s chief executive, noted: ‘We have had another very good year of growth, with revenues up 7%, operating profit up 9% and earnings per share up 18%. The strength of our financial performance is a result of our successful transition to more broadly-based growth and sustained investment to create a better service and wider range of products for customers.’

United Kingdom, Sky