BSkyB subscriber growth tops estimates

BSkyB posted subscriber numbers well ahead of analyst estimates, after spending heavily on marketing its satellite TV service…

BSkyB posted subscriber numbers well ahead of analyst estimates, after spending heavily on marketing its satellite TV service over the crucial Christmas season.

The company, which has embarked on a controversial growth strategy under chief executive Mr James Murdoch, said today it added a net of 192,000 subscribers in its second quarter to December 31st, including 168,000 subscribers for its premium Sky+ service.

Analysts expected BSkyB to add about 150,000 subscribers in the second quarter, although many said it was likely that the company would surpass their estimates.

Mr Murdoch, whose plan to boost subscribers at the expense of near-term profit margins has received a mixed reaction from investors, said the company had its best Christmas in two years.

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"We've got 11 months to go before our target of 8 million customers," he told financial information provider Cantos in an online video interview. "I think that is short-term guidance enough. We are confident of our targets and we think we will be able to get there.

Mr James Murdoch is the son of Rupert Murdoch, who is BSkyB's chairman and whose News Corp media conglomerate owns 35.4 percent of the company.

He reiterated the company's goal of 10 million subscribers by 2010, despite the challenge of the subscription-free TV service Freeview, which added 1.5 million households over Christmas.

The company spent £258 million on marketing in its first half, up 20 per cent from the year-ago period. Sky expects 2005 above-the-line marketing such as television advertisements to increase 40 to 50 per cent for the full year.