Revenues jump at Sky as subscriber numbers hit 8.5m

by Darren Davidson, Brand Republic 27-Jul-07, 09:00

LONDON - BSkyB reported a 10% jump in revenues to £4.5bn as it put in a strong performance for the year ended June 30, during which it added a net 406,000 new subscribers to reach 8.58m.

The satellite broadcaster recruited 90,000 new customers during the fourth quarter, which followed its decision in February to pull channels including Sky One from rival Virgin Media's platform. Total customer numbers hit 8.58m.

Operating profit was down from £877m last year to £815m, while profit before tax declined from £798m to £724m. Full profits for the year were £499m, down 9.4%.

However, the satellite broadcaster said more of its customers were choosing Sky products than ever before, with Sky+ acquisitions up 821,000 to 2.37m.

Other products to experience strong growth included High Definition TV, Sky Broadband and Sky Talk.

James Murdoch, UK chief executive of Sky, said: "This year has been one of enormous importance and change for us, with the launch of our broadband and talk services transforming our business and our future prospects fundamentally.

"This expanded product range is now attracting new customers to Sky at a very healthy pace, as well as deepening our relationships with existing customers."

Meanwhile, it was announced earlier this week that the ongoing legal fight between Virgin Media and Sky will not be resolved until 2009, after the broadcasters agreed on a timetable in which the trial would not commence until the middle of next year.

The trial is not expected to take place until mid-2008, and the verdict is expected in 2009. Virgin Media filed the case at the High Court in April of this year, accusing Sky of anti-competitive behaviour.