BSkyB: Record profits, up 14% to £1.2bn
July 26, 2012
By Chris Forrester
BSkyB reported impressive financials (year to June 30) on July 26, with record operating profits of £1.2 billion on revenues of £6.79 billion, and representing growing margins of 18 per cent which Sky says is the highest margin level for the past six years.
Sky also announced that it had struck a deal with UK telephony provider TalkTalk to distribute Sky’s channels on its forthcoming YouView IPTV service.
The latest three months also show improvements, especially in Sky’s all-important churn rate which is at 9.9 per cent (down y-o-y from 10.4 per cent). Net subscriber gain for the year was 312,000, although DTH subscriber net additions were only 20,000 during the 4th Quarter (although total additional Sky customers taking one or other of the broadcaster’s products grew by 57,000 during the quarter to June 30, including the 20,000 DTH subs).
CEO Jeremy Darroch admitted that the economic conditions in the UK were creating ‘headwinds’ for the broadcaster, but said its recently introduced NOW TV would represent fresh opportunities for Sky.