BRITISH SKY Broadcasting, Britain and Ireland’s biggest pay-television provider, posted a fourth-quarter profit, boosted by new subscribers and demand for high-definition television programmes.
Net income was £90 million (€105.4 million) in the three months ended June 30th, compared with a loss of £9 million a year earlier. Sales rose 9.4 per cent to £1.36 billion.
BSkyB, which owns the Sky TV channels, won 124,000 net new subscribers in the fourth quarter for a total of 9.44 million. High-definition clients rose 291,000 to 1.31 million.
The company did not break out any figures for the Irish market but it is understood to be trading well and now has about 600,000 subscribers in the Republic.
BSkyB cut high-definition product prices last year and has offered broadband in Britain since 2006 to compete with cable-TV provider Virgin Media and incumbent telco BT Group. It has consistently ruled out entering the Irish broadband market, citing the high cost of gaining access to Eircom’s lines.
“This is the year where high-definition TV moved centre-stage,” chief executive Jeremy Darroch said in a statement. “Almost one in six customers are choosing to take Sky for TV, broadband and talk and there is plenty of opportunity for further growth ahead.”
The company anticipates continued growth to its target of 10 million customers by December 2010.
BSkyB has seen “really strong customer demand” and clients are taking more products, chief financial officer Andrew Griffith said yesterday.
BSkyB gained 118,000 broadband customers in the quarter for a total of 2.23 million.
Average revenue per user for the quarter rose to £464 from £427 a year earlier. The full-year dividend increased 5 per cent to 17.6 pence a share.
– (Bloomberg)
