BSkyB breaks record with rising revs and triple play leadership
Editor ©RapidTVNews | 02-05-2012
By a wonderful twist of irony, just as Rupert Murdoch was being condemned for business practices through his organisation, BSkyB, whose full ownership by Murdoch’s News Corp is now surely dead, has reported record breaking financial results.
For the nine months ended 31 March 2012 , BSkyB announced that revenue had smashed the £5 billion barrier (£5.1BN) a rise of 5% driving a 15% rise in operating profit to £908 million and EBITDA of £1.2 billion.
The operator showed strong growth across all of its products lines especially that of the core TV business and in the quarter overtook Virgin Media to become the leading triple play provider in the UK at 3.2 million, up 24% year-on-year. BSkyB reported that total quarterly net product growth of 904,000 to 27.7 million with 78,000 net new households in the quarter to reach 10.55 million customers.
HD continued to be a strong performer with now more than four million customers out of BSkyB’s total of 10.268 million DTH TV subs. Over two million took the multiroom service.
Reminding the markets that the company he leads had performed very well in n what remained a tough economic environment, Jeremy Darroch, BSkyB Chief Executive, commented: “More households are choosing Sky and taking more products from us because we’re constantly looking to improve the quality and value that we offer. Already in 2012, we’ve launched an entirely new channel dedicated to Formula 1, given millions of households access to a huge choice of on demand TV and made our market-leading broadband service even better with the launch of our fibre products and free out-of-home Wi-Fi. Looking ahead, we will continue to improve our service for all Sky customers as we believe this is the best way to build a larger business and continue to increase returns for shareholders.”
Looking forward, BSkyB pointed to HD and 3D coverage of the Olympics and to the roll out of the NOW TV over-the-top (OTT) internet TV service targeting the 13 million UK households who do not currently subscribe to any subscription pay-TV service.
Yet in a nod to the travails of Rupert Murdoch and News Corp who owns 39% of the company, the company also noted that the company is engaging with UK regulator Ofcom who is gathering evidence as part of its on-going assessment of whether BSkyB is fit and proper to hold its broadcasting licences. BSkyB was keen to point out that it continues to believe that it remains a fit and proper licence holder, as demonstrated by its positive contribution to UK audiences, employment and the broader economy, as well as its strong record of regulatory compliance and high standards of governance.