SOURCE: British Sky Broadcasting Group PLC

July 28, 2006 02:02 ET

British Sky Broadcasting Group PLC announces Final Results

Middlesex, UK -- (MARKET WIRE) -- July 28, 2006 --

                                                   28 July 2006


        Results for the twelve months ended 30 June 2006

           Strong operating and financial performance

Results highlights

- DTH subscribers increased to 8.176 million, growth of 
  77,000 in the final quarter and 389,000 in the year

- Sky+ households increased by 75% to 1.553 million, 19% 
  penetration of total DTH subscribers

- Multiroom households increased by 62% to 1.047 million, 
  13% penetration of total DTH subscribers

- Revenue increased by 8% to GBP4.1 billion

- Gross margin expanded by four percentage points to 61%

- Operating profit increased by 7% to GBP877 million, an
  operating margin of 21%

- Adjusted earnings per share1 increased by 9% to 
  30.7 pence

- A proposed 34% increase in the final dividend to 
  6.7 pence per share, generating a full year dividend 
  of 12.2 pence

Operating highlights

- Preparations made for the launch of Sky Broadband 
  following the acquisition of Easynet Group plc

- Sky HD launched nationwide

- New customer management systems implemented for 
  all DTH customers

- Key rights to the FA Premier League secured for 
  the 07/08 to 09/10 seasons

- Major contracts agreed with movie studio and third 
  party channel partners

- Announced the creation of over 2,000 new jobs for
  customer advisors and home installation engineers

- Carbon neutral status achieved, a world first for 
  a major media company

James Murdoch, Chief Executive said:

"Our industry is changing faster than ever before and for Sky, 2006 has been an important and exciting year. The business and the team have performed well delivering good levels of customer growth, in line with our plans, and strong growth in both revenues and profitability.

We have a clear vision for the future growth and direction of our business and we feel encouraged by the strong demand our customers show for new entertainment and communications services. With a continued focus on providing more choice, flexibility and control, we feel confident as we look ahead to the substantial opportunity this market holds for us."

1 Profit for the year and earnings per share ("EPS") have been adjusted to remove mark-to-market movements in derivative financial instruments that do not qualify for hedge accounting. Profit and EPS for the comparable period also exclude the one-off effect of two exceptional items - the profit on disposal of a joint venture and a payment from the ITV digital liquidators - and an increase in the estimate of recoverable tax assets in respect of prior years. Please see note 6 on page 23 for further disclosure.



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



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



Katie Lang                                   Tel: 020 7251 3801
Kirsty Flockhart                             Tel: 020 7251 3801

A conference call for UK and European analysts and investors will be held at 9.00 a.m. (BST) today. To register for this, please contact Silvana Marsh at Finsbury on +44 20 7251 3801. A live webcast of this call and replay facility will be available on Sky's corporate website,

There will be a separate conference call for US analysts and investors at 10.00a.m. (EST) today. Details of this call have been sent to US institutions and can be obtained from Rebecca Lohse at Taylor Rafferty on +1 212 889 4350.

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