Record results for BSkyB
July 26, 2013
By Chris Forrester
As if to give two fingers to arch-rival BT, BSkyB detailed a very long list of record financial and operational achievements in its 12-months (to June 30th) statement early on Friday morning (July 26th).
It also introduced a new number, one that echoed cable’s old Revenue Generating Units, but in Sky terms it translates to ‘Paid for subscription products’ and a 3.3 million growth in these PFSP to 31.6 million. Revenues are up 7 per cent (to £7.235 billion), EBITDA is up 8 per cent, and operating profit up 9 per cent (£1.330 billion). Free- cashflow is more than £1 billion, and ARPU is up y-o-y £29 to £577.
The other key metrics were all in positive territory:
• SkyHD boxes (up 170 per cent) to 2.7 million
• 19 per cent increase in Sky Go users, to 3.3million
• Five-fold increase in On Demand downloads
• 200 per cent growth in Sky Store video rentals
CEO Jeremy Darroch said that Sky’s share buyback scheme would be extended, and a record ordinary dividend would be paid. “We expect the consumer environment to remain challenging over the coming twelve months. Against that backdrop, we have a strong set of plans that will extend our leadership in core areas – on screen, in home communications and in front-line service delivery; accelerate growth in new services; and improve efficiency to build a bigger, more profitable business for shareholders.”
Drilling down in the latest quarter-year, it seems Sky’s basic subscription (Paid For Subscription Products) has grown 34,000, HD is up 117,000, Broadband is up 519,000, telephony is up 293,000 and line rentals are up 308,000. Internet-connected Sky+HD boxes are up 425,000, the latter helped by BSkyB’s consolidation of O2’s consumer broadband and fixed line businesses. However, annual churn is up 1 per cent from 9.9 per cent to 10.9 per cent.