BSkyB nine-month profit rises

Retail and wholesale operations drive revenue growth.

New Statesman
BSkyB's headquarters in west London. Credit: Getty Images.

British Sky Broadcasting Group (BSkyB) has reported a profit of £689m for the nine months ended 31 March 2012, compared to £581m for the same period last year.

Diluted earnings per share from continuing operations were 39.5p (2011: 30.1p), while operating profit on a reported basis increased by 25 per cent to £939m (2011: £752m).

The Britain’s favourite triple play provider posted earnings before interest, taxes, depreciation and amortization (EBITDA) of £1.19bn (2011: £992m).

With strong growth in both retail and wholesale operations, the company’s revenue grew by 5 per cent to £5.08bn compared to £4.83bn for the same period last year.

Retail subscription revenue grew by 4 per cent to £4.17bn (2011: £4bn), while wholesale subscription revenue increased by 10 per cent to £259m (2011: £236m).

During the quarter, the company added 904,000 total net products, while total HD customers reached 4.2 million. Average revenue per unit (ARPU) grew to a new high of £546 in the quarter.

Jeremy Darroch, chief executive of BSkyB, said:

We have made a good start to 2012.  In what remains a tough economic environment, strong and consistent execution of our plan has delivered good growth across our product range. We have grown revenues by 5 per cent while holding prices flat for customers and delivered a record nine-month operating profit of £908m alongside 24 per cent growth in earnings per share. The decision to focus our marketing on home communications has paid off with our fastest quarter of growth since launch and confirmation that Sky is now Britain’s favourite triple play provider.

More households are choosing Sky and taking more products from us because we’re constantly looking to improve the quality and value that we offer.  Already in 2012, we’ve launched an entirely new channel dedicated to Formula 1, given millions of house-holds access to a huge choice of on demand TV and made our market-leading broadband service even better with the launch of our fibre products and free out-of-home WiFi.  Looking ahead, we will continue to improve our service for all Sky customers as we believe this is the best way to build a larger business and continue to increase returns for shareholders.