BSkyB has announced a leap in its half-yearly profits. Group revenues for the period to December 31, 2010 were 15% higher year-on-year, giving the satcaster operating profits 26% higher at £520 million. The rise potentially increases the sale price of BSkyB as News Corp attempts to purchase the 61% of the company it doesn’t already own.
Having already climbed the 10 million subscriber barrier earlier in the quarter, the number of subscribers in the UK and Ireland receiving DTH satellite services from BSkyB stood at 10.096 million as of December 31.
Sky+ HD added another 343,000 homes to reach 3,497,000 households, the increase down on the 482,000 added in the three months to December 31, 2010, but still part of a 68% year-on-year increase. Broadband saw its highest growth in more than two years, passing the three million home level to reach 3,006,000. All this contributing to an ARPU (Average Revenue Per User) up to £541 from £492 12 months ago.
“Overall, almost one in four customers now choose to take all three of TV, broadband and telephony from us, which is contributing to further strong ARPU growth and good levels of customer loyalty,” said Sky CEO Jeremy Darroch.
The results are the first to include the acquisition of the Living TV Group, the former Virgin Media TV Group, incorporated on July 12. The group, which also included Challenge and the now defunct Channel One and Bravo, brought with it of which £45 million in advertising; £14 million wholesale; and £1 million in other revenue. £22 million has been spent on restructuring, principally relating to redundancy costs.
One line of interest is Installation, hardware and service revenue at £63 million, a fall from £99 million in 2010, following the decision to lower the retail price of HD boxes in January 2010. Subscriber acquisition costs by £34, to £354.
BSkyB has confirmed the purchase of The Cloud (Broadband TV News, January 24), giving it ownership of 5,000 public Wi-Fi locations across the UK, and providing customers with access to BSkyB services at locations that include Marriott hotels, McDonald’s and Pret a Manger.
