HD boosts profits for BSkyB as market expands
Friday, 31 July 2009
The broadcasting juggernaut that is BSkyB shrugged off the downturn and the advertising issues dogging free-to-air rivals, to lift profits and post its strongest customer growth in five years.
Sky yesterday posted a 4% jump in operating profits to £780m in what chief executive Jeremy Darroch called an “excellent year of growth”.
The group said it had added a 462,000 net new customers in the year to the end of June, with new customers are taking more products than ever before.
Mr Darroch was bullish yesterday: “We see a substantial opportunity ahead for our business. Our focus on the customer and our growing capability as an organisation positions us well to build a more profitable and durable business for the long-term.”
Sky also announced its High Definition service had attracted 1.3 million customers, more than doubling during the year despite the extra charges.
It first launched HD in 2006 and has heavily invested in the service since. Mr Darroch said: “This is the year where high definition television moved centre-stage”.
The group said it had created 1,000 new jobs since January to support is growth in Sky's High Definition service. About 9 million homes have HD-ready sets in the UK, which is expected to rise to 14 million by the end of the decade.
The company said its broadband and home phone services were developing, with “plenty of opportunity for growth ahead,” according to Mr Darroch.
Paul Reynolds, analyst at Deutsche Bank said: “Sky has set itself apart as a company in the sector that has successfully reinvested in its business, clearly continues to offer the right products to new and existing customers and has a robust profit outlook for the medium term.”
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