Earnings

Return to Article

BSkyB Reports 3 Million Pounds 3Q Profit

The Associated Press

LONDON (AP) — Satellite TV service British Sky Broadcasting Group PLC on Thursday reported a profit of 3 million pounds in its third quarter as consumers took their entertainment at home because of the recession, reversing a loss a year earlier.

In the three months ending March 31, revenue rose 12 percent to 1.4 billion pounds ($2.1 billion), and the company added 80,000 net customers in the quarter, up 43 percent from a year earlier.

For the first nine months of the year, BSkyB reported a net profit of 169 million pounds versus a loss of 118 million pounds a year earlier. Revenue was up 8 percent to 4 billion pounds.

BSkyB shares were up 5.6 percent at 491 pence on the London Stock Exchange.

"The market could hardly have asked for more from these numbers," said Richard Hunter, analyst at Hargreaves Lansdown Stockbrokers.

"In a difficult economic environment, the current consumer shift toward preferring entertainment at home is playing into Sky's hands, whilst its high-definition strategy has also gained traction," Hunter added.

More than 1 million of BSkyB's 9.3 million customers subscribe to its high-definition service, with 243,000 signing up for the service in the recent quarter.

Chief Executive Jeremy Darroch said BSkyB had taken on 750 employees during the quarter to meet the demand.

He said the rest of the year would remain challenging.

"We will stay focused on cost efficiency to allow us to invest sensibly in areas that drive long-term value for the business, such as high definition, with the objective of emerging stronger from the downturn," Darroch said.

BSkyB is controlled by Rupert Murdoch's News Corp., which holds a 39 percent stake.

___

On the Net: http://corporate.sky.com