SOURCE: British Sky Broadcasting Group PLC

November 02, 2007 03:01 ET

British Sky Broadcasting Group PLC announces 1st Quarter Results

Middlesex, UK--(Marketwire - November 2, 2007) -


                     BRITISH SKY BROADCASTING GROUP PLC

          Interim Management Statement and Results for the three 
                       months ended 30 September 2007

                          Strong demand continues



- New customer additions of 327,000 in the quarter

- Net customer growth of 83,000 to 8.665 million

- Strong growth in additional products from the previous quarter

     -   Record Sky+ growth of 323,000 to 2.697 million, up 14%

     -   HD growth of 66,000 to 358,000, up 23%

     -   Multiroom growth of 68,000 to 1.411 million, up 5%

     -   Sky Broadband growth of 223,000 to 939,000, up 31%

     -   Sky Talk growth of 153,000 to 679,000, up 29%

- Overall product sales of over 1.2 million, up 86% on the comparable
  period

- Sky Broadband passed one million customers during October
Strong top-line growth; profits reflect investment for future growth

- Group revenue increased by 11% on the comparable period to GBP1,185
  million

- Gross margin increased by three percentage points on the comparable
  period to 66%

- Adjusted operating profit of GBP150 million reflects very strong Sky+
  customer growth

- Reported operating profit of GBP143 million including a full first
  quarter's investment of GBP51 million in Sky Broadband and Talk and GBP6
  million in Easynet Enterprise and a GBP7 million exceptional charge

- Basic EPS of 4.8p (2007: 6.5p); adjusted EPS of 5.0p (2007: 6.4p)(1)


(1)  Comparative period adjusted earnings per share have been revised to
     take account of GBP3 million EDS litigation costs which were not
     disclosed as an exceptional item in the comparable period

James Murdoch, Chief Executive said:

"We've seen continued good demand from customers for our entire product range, with over one million product sales for the fourth consecutive quarter. Sky+ has been exceptional, growing faster than ever before - and is now enjoyed by almost one third of Sky TV customers.

"We launched Sky Broadband in the belief that customers would respond to quality and value, and they have. After just 14 months over one million customers have chosen Sky Broadband, and growth continues.

"As expected, our financial performance reflected strong product sales, our investment in high quality programming and a full quarter of investment in Sky Broadband and Talk. We expect that performance for the full year will be in line with our plans."


Enquiries:

Analysts/Investors:

Andrew Griffith                                     Tel: 020 7705 3118
Robert Kingston                                     Tel: 020 7705 3726

E-mail: investor-relations@bskyb.com


Press:

Matthew Anderson                                    Tel: 020 7705 3267
Robert Fraser                                       Tel: 020 7705 3036

E-mail: corporate.communications@bskyb.com

A conference call for U.K. and European analysts and investors will be held at 8:00 a.m. (GMT) today. To register for this, please contact Silvana Marsh at Finsbury on +44 20 7251 3801. A live audiocast of this call and replay facility will be available on Sky's corporate website, http://www.sky.com/corporate.

There will be a separate conference call for US analysts and investors at 10.00 a.m. (EST) today. Details of this call have been sent to US institutions and can be obtained from Dana Johnston at Taylor Rafferty on +1 212 889 4350. A live audiocast of this call and replay facility will be available on Sky's corporate website, http://www.sky.com/corporate.

To view the full document, please paste the following URL into the address bar of your browser:

http://www.rns-pdf.londonstockexchange.com/rns/8836g_-2007-11-1.pdf

                This information is provided by RNS
     The company news service from the London Stock Exchange