British Sky Broadcasting today reported a better-than-expected 33 per cent rise in operating profits in the nine months to the end of March.
The company, which is controlled by Mr Rupert Murdoch's News Corporation, looks to be benefiting from the financial turmoil at its leading British pay-television rivals.
However, an exceptional charge of £22.3 million sterling relating to the collapse of ITV Digital and goodwill amortisation of £29.2 million took the shine off an otherwise healthy set of results and pushed the group to a pre-tax loss of £30.8 million for the three months to March 31st.
The group reported a net increase of 171,000 digital satellite subscribers in the third quarter, taking its total to 5.89 million. The target is seven million by 2003, but some analysts think that is unrealistic.
Operating profit increased by 33 per cent to £129 million and positive free cashflow in the quarter resulted in a reduction in net debt of £140 million.
Excluding goodwill and exceptional items, BSkyB reported a pre-tax profit of £500,000 in the third quarter, compared with a loss of £70.3 million in the same period last year. Operating profits increased from £46.6 million to £59.2 million. Revenues were up 15 per cent at £733.5 million.
BSkyB also said it was seeking "opportunities to ensure the continued availability" of its Sky channels on the digital terrestrial TV platform, after the collapse of ITV Digital, which gave it a lucrative source of income.
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