BSkyB defies recession with solid quarter
Editor ©RapidTVNews | 19-10-2011 Despite not reporting as strong a performance as year ago, BSkyB has defied the ravaged of retail recession sweeping the UK and has posted robust numbers for the three months ended 30 September 2011.
The summer months are traditionally a tough time for the TV industry, the recession notwithstanding and indeed the company with some understatement has described its quarterly results as showing a good start to the year in what remains a challenging consumer environment.
Overall, BSkyB showed revenue growth of £1.66 billion, a 9% year on year increase, driving an adjusted profit of £295 million, itself up 26% year on year.
The DTH broadcaster impressed in terms of growth in total customers and products, up 77,000 and 683,000 respectively despite they inclement trading times. Just under three million customers were now taking all three of TV, broadband and telephony, an increase of 29% year on year and over 1.6 million customers signed up for the Sky Go service— which allows viewers to watch favourite Sky Sports on the move on a range of devices such as a laptop, iPad or iPhone—in its first three months.
Commenting on the results, BSkyB Chief Executive Jeremy Darroch said: "We continue to deliver strong financial results and good growth in customers and products. In tough market conditions, our move to more broadly based growth and multiple products is serving us well. New customers are choosing Sky over other providers, existing customers are taking more from us and our financial performance is accelerating, with another quarter of double-digit growth in operating profit, EPS and free cash flow.
Looking ahead, Darroch saw the trading environment as likely to remain challenging as a result of the pressures facing consumers in the UK and Ireland. “Our job is to give customers the quality and value they're looking for, with a better choice of programmes, more innovation and peace of mind with a price freeze for 12 months,” he assured investors and customer alike.