Shares in BSkyB fell almost 5 per cent yesterday after the markets reacted negatively to the company's latest subscriber numbers, although results in Ireland remained strong.
Sky Ireland now has 372,000 subscribers, its highest level. The Irish figures refer to the three months to September 30th. During this period, the number of subscribers increased by 9,000. Sky said the number of subscribers had risen 40,000 over the last 12 months, representing year-on-year growth in excess of 12 per cent.
The Irish Sky service was boosted in recent days by the decision of the four ITV channels in the UK to go "free to air" on satellite. This means that Sky subscribers in Ireland can now pick up ITV channels via their Sky satellite.
Commenting on the latest figures, Delia Bushell, managing director, Sky Ireland said: "Sky continues to perform very strongly in the Irish marketplace with high subscriber growth. We are firmly committed to continuing to invest and innovate in Ireland, including the launch of high definition television services in the first half of 2006."
Shares in BSkyB, which owns the Irish company, plunged by 7 per cent yesterday morning after the company reported the lowest quarterly net rise in subscribers since it became a digital-only service four years ago.
The company's share price fell by 37p to 490p just after trading opened in London, before rallying to 495p.
It is the first time Sky's share price has gone below £5 since October last year. However by late trading yesterday evening the shares were down 4.8 per cent.
The company said it had added just 57,000 customers in the three months between July and September, below analysts' expectations of around 68,000.
Separately, BSkyB directors narrowly pushed through a shareholder vote on its controversial plans for a share buyback at its annual general meeting (agm).
BSkyB later survived an investor rebellion at its annual meeting in London over plans to buy back 5 per cent of its shares.
The move was controversial because the scheme would increase the percentage of the company owned by Rupert Murdoch's News Corporation.
The satellite television company faced opposition from 46 per cent of the shareholders who voted on the proposal.
In a filing following yesterday's agm, BSkyB said it had received 410 million votes agreeing with its request for normal city rules on stake-building to be waived, while 345 million shares were voted against the resolution.
The scale of today's rebellion exceeded last year's revolt over the same issue, when nearly a fifth of votes cast by independent shareholders opposed a share buyback.
Many shareholders have been unhappy that the buyback will let News Corp raise its stake in Sky from 37.2 per cent to 39.1 per cent over the next 12 months, something they believe amounts to "creeping control".
Deputy chairman Jacob Rothschild said the proposals were put to a vote only after consulting a number of shareholders.
He said: "We have reflected on their concerns and whilst we do continue to believe that it is appropriate to seek the authority this year, we will not be proposing to renew the buyback authority next year." - (Additional reporting by Guardian Service / PA)
