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BSkyB Reports 5% Revenue Growth, And Adds New Pay-As-You-Watch Sports Channel Option

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BSKYB REPORTS 5 PER CENT REVENUE GROWTH
Revenue, profits and subscriptions all up at BSkyB | Alamy

BSkyB has seen revenue, profits and subscriptions all rise in the past six months, helping the company to maintain good growth in a tough consumer market.

Revenue for the last six months was up 5% to £3.5 billion, with profits before tax rising to £642 million. Subscriptions are also up to 10.74 million.

Around 460,000 Sky HD set top boxes were also activated in the last quarter of 2012, taking the total number of connected boxes to 1.7 million. Analysts believe an exceptional sporting calendar in 2012 may well have helped boost BSkyB's figures.

The company – part-owned by Rupert Murdoch's News Corporation- is also going to provide access to six sports channels to viewers who have not signed up for a Sky television box or paid for a Sky subscription, for £9.99 a day.

The new service will be available as part of Now TV, BSkyB's new pay-as-you-go service, which the company launched in an effort to stave off competition from Netflix and Amazon's Lovefilm.

"We have delivered another good performance in the first half with strong progress across the board," chief executive Jeremy Darroch said. "Although we expect the consumer environment in 2013 to remain challenging, we have a strong set of plans for the year ahead."

Company Watch's business analyst Nick Hood told the Huffington Post UK: "Despite concerns at the potential impact of online competition from Netflix and Amazon's Lovefilm on its pay-TV business, BSkyB is growing its subscription services base at an impressive rate and adding customers across the board.

"Revenue growth is also being driven by the first annual price increase since the 2011 freeze. The dividend increase reflects strong earnings growth and will please shareholders, who will be relieved that management can concentrate on business matters now that the distraction of the News International media fire storm has died down."

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