BSkyB beats growth forecasts

British pay-TV operator BSkyB beat forecasts with 80,000 net new customers in the third quarter due to demand for its high-definition…

British pay-TV operator BSkyB beat forecasts with 80,000 net new customers in the third quarter due to demand for its high-definition offer but said it still expected 2009 to remain challenging.

The UK's dominant pay-TV firm said it had seen a very strong customer response for HD TV, from both new and existing customers, with 243,000 net additions in the quarter.

It also managed to hold on to more customers than most analysts had expected and the price the average customer paid over the year hit a new high at £452, compared to £424 pounds last year.

The demand for high definition meant BSkyB's 80,000 net customer growth was 43 per cent higher than the previous year, to give it a total customer base of 9.32 million households.

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It added 130,000 new customers to its broadband service, meaning some 15 per cent of the total customer base now took all three products of TV, broadband and telephony.

BSkyB launched a broadband service and other offerings such as the cheaper HD package to increase customer loyalty and despite the tough economic environment it has enjoyed strong success.

Churn, or the number of customers who dropped Sky, was 10.6 per cent.

The company reported nine-month adjusted revenues up 7 per cent to £3.96 billion, with an adjusted operating profit up 13 per cent at £589 million, both in line with forecasts.

“Looking ahead to the rest of calendar 2009, we expect conditions to remain challenging,” chief executive Jeremy Darroch said in the statement.

“We will stay focused on cost efficiency to allow us to invest sensibly in areas that drive long-term value for the business, such as high definition, with the objective of emerging stronger from the downturn.”