Strong demand boosts Bsky B profits
BSkyB has reported broad demand for its services after adding 760,000 new paid-for subscription products in the three months to September 30.
Revenues at the satellite broadcaster were 6% higher at £1.9 billion in the first quarter of its financial year, leading to a bigger-than-expected 11% rise in adjusted profits to £316 million.
The 8% growth in paid-for subscriptions in the quarter came as the company added 51,000 new retail customers to close the quarter at 11.5 million.
In TV, the company attracted 46,000 new TV customers and record growth in Sky Go Extra – which enables viewers to watch content on mobile devices – helped it add a total of 462,000 new TV products in the period.
In total, 37% of its customers now take all three of TV, telephony and broadband from Sky.
The home communications side of the business added almost 300,000 products during the quarter. Average revenues per user grew by a further £17 to reach £576 whilst churn remained stable year on year at 11%.
Its dedicated Sky Sports Ryder Cup channel broke previous viewing records after being watched by 4.1 million people.
Chief executive Jeremy Darroch said: “We have made a strong start to the year. After a year of investment, we are seeing the returns coming through with good top-line growth of 6% translating into an 11% increase in profits.”
