BSkyB revenue up on customer retention
Pay-TV firm BSkyB added fewer new customers in the second quarter than expected but said it was making more money per user, growing customer loyalty and operating in line with targets.
BSkyB ordered to cut ITV stakeGroup revenue and operating profit came in ahead of analyst expectations, although the later was hit by the investment in broadband and premium programming, and BSkyB expects its profit performance for the full year to be in line with forecasts.
BSkyB posted an 11 percent rise in first-half revenue to 2.46 billion pounds but its operating profit was down 25 percent on last year as investment in broadband and premium programming such as Premier League soccer continued to take a toll.
It reported a first half pretax loss of 36 million pounds due to a write down on the value of its stake in broadcaster ITV.
"We have made good progress during the quarter," new Chief Executive Jeremy Darroch said in a statement. "We enter calendar year 2008 in good shape.
"Looking forward to the second half of the financial year, we are well positioned to grow," the group said. "Financially, we anticipate that the operating profit performance for the full year will be in line with our expectations."
BSkyB added 167,000 net subscribers in the period ending Dec, 31, below an average analyst forecast of 174,000, but giving it 8.83 million customers in total and putting it in line for its target of 10 million customers by 2010.
Its shares were up 1.9 percent at 549 pence by 9:20 a.m., figuring among the top gainers in a weak broader market .FTSE.
Churn or the percentage of total customers who dropped their subscription, was reduced to 10 percent - its lowest level for three years - and the average revenue per user was at a record of 421 pounds due to price rises and customers taking increased products.
BSkyB added 260,000 broadband customers boosting its total to 1.2 million, and reported record growth for its personal digital recorder Sky+, taking the Sky+ total to 3.1 million households or 35 percent of the customer base.
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