BSkyB reports 33 per cent profit boost
Satellite broadcaster reports strong growth in first quarter profits.
Satellite broadcaster BSkyB has reported a 33 per cent increase in its pre-tax profits, despite a significant reduction in the number of new subscribers compared to this time last year.
During the three month period until the end of September, BSkyB registered pre-tax profits of £307m. The number of new TV subscribers achieved, 26,000, was significantly less than 96,000 signed-up in the same quarter last year, however, profits rose due to increased cross selling to existing customers. In the period, BSkyB sold 150,000 broadband contracts and 147,000 telephone contracts, taking the number of its customer base who subscribe to all three of their products to 28 per cent.
BSkyB also benefitted from a £39m payout from News Corporation, its largest shareholder, as compensation for the failed takeover bid which fell through earlier this year.
James Darroch, Chief executive of BSkyB said, "In tough market conditions, our move to more broadly based growth and multiple products is serving us well."