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BSkyB Broadcasts Falling Profits
London (AFP) May 02, 2007 British satellite TV broadcaster BSkyB on Wednesday reported an almost 6.0 percent drop in quarterly profits as it continued to plough money into its expanding high-speed Internet business. However it also unveiled stronger-than-expected customer growth figures for its fiscal third quarter, sending shares in the pay-TV giant up nearly 5.0 percent in early trading. The mixed results come amid troubled times for BSkyB, as it faces legal action from one of its rivals for allegedly stifling competition. BSkyB's net profit recoiled to 142 million pounds (209 million euros, 283 million dollars) in the three months to March 31, compared with the same period in 2006. Group revenue rose 8.7 percent to 1.156 billion pounds. BSkyB added that its customer base rose by 51,000 to 8.49 million in the three months to the end of March, exceeding the 18,000-30,000 consensus estimate. Analysts said BSkyB likely picked up customers from pay-TV rival Virgin Media after the withdrawal of Sky's 'basic' channels from the cable platform at the end of February following a contractual dispute. Virgin Media last month launched legal proceedings in Britain's High Court against BSkyB, accusing the latter of stifling competition. Virgin said its move was a last resort in its bid to resolve a row with BSkyB that has led to hundreds of thousands of Virgin customers being prevented from viewing acclaimed US programs, including "24" and "Lost". Some British media have described the escalating row as a battle between British tycoon Richard Branson, head of the Virgin conglomerate, and US rival Rupert Murdoch, whose media empire News Corp. owns 39 percent of BSkyB. Heading BSkyB, meanwhile, is Murdoch's son James, who on Wednesday said his group was delivering on its multi-product strategy. "Our investments in customer service, value and quality are driving more customers to choose more services from Sky than ever before," the chief executive said. BSkyB is ploughing some 400 million pounds over three years into its Internet broadband business. Its broadband customer base rose to 553,000 by the end of April, against 193,000 at the start of January, and the group said it was on track to have more than 700,000 high-speed Internet customers by the end of June. In morning trade, the share price in BSkyB increased by 4.65 percent to 611.70 pence on London's FTSE 100. The capital's leading share index was 0.90-percent higher at 6,477.40 points.
Source: Agence France-Presse Email This Article
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