BSkyB profits up 17% to £1.19bn

26/07/2012

BSkyB has reported pre-tax profits of £1.19bn - a record 17% increase on the previous year. Revenues were up 3% (to to £6.8bn) as the company grew its total subscriber base to 10.6m households during the 12 months to the end of June. This included 57,000 net new households added during Q4.

In total, customers bought 3m products (TV and HD services, broadband connections and phone connections) from the company during the last year. Individually, Sky TV added 101,000 subscribers during the year to reach 10.2m; Sky broadband added 666,000 during the year to reach 4m; and Sky HD added 121,000 to reach 4.3m.

BSkyB recently launched the initial version of its internet TV service Now TV, which will offer films, sport and entertainment channels on digital devices including PCs, mobile devices and games consoles. The company intends to spend £30m launching and developing the service, including a major marketing campaign to position it against competitors such as LoveFilm and Netflix. As part of its long-term strategy, BSkyB has invested $10m (£6.5m) in media streaming manufacturer Roku, following a deal to make Now TV accessible through its boxes.

BSkyB also intends to upgrade its Sky Anytime+ service by adding access to BBC iPlayer, ITV Player and Demand Five.

The company is also planning to return an additional £500m to shareholders through a share buyback.

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