Middlesex, UK -- (MARKET WIRE) -- January 31, 2007 --
BRITISH SKY BROADCASTING GROUP PLC
Results for the six months ended 31 December 2006
BSkyB announces record sales and 20% increase in interim dividend;
on track for our targets
Operational Highlights
* New customer additions of 432,000 in the second quarter, the highest in
six years
* Net customer growth in the second quarter of 183,000 to 8.441 million
* Record growth in Sky+ boxes to 2.13 million, in 1.97 million households
* HD subscribers almost doubled in the second quarter to 184,000,
establishing Sky's leadership in HD
* Good progress on Sky Broadband with gross bookings of 343,000 and
259,000 activated customers by 28 January 2007(1)
* Broadband network roll-out ahead of plan, 771 exchanges unbundled, 50%
of the U.K.(1)
Financial Highlights
* Revenue increased by 10% to GBP2,220 million, including GBP22 million
from Sky Broadband and GBP77 million from Easynet Enterprise
* Adjusted gross margin of 63% up from 60% in the comparable period(2)
* EBITDA of GBP486 million including losses of GBP66 million in Sky
Broadband and Easynet Enterprise and a net exceptional gain of
GBP59 million
* Operating profit of GBP395 million including losses of GBP84 million in
Sky Broadband and Easynet Enterprise and a net exceptional gain of
GBP59 million
* Basic EPS of 14.0p (2006: 14.9p) and adjusted EPS of 11.3p
(2006: 14.7p)(3)
* Interim dividend increased by 20% to 6.6 pence per share
James Murdoch, Chief Executive said:
"In the last six months we have achieved a number of important milestones
in building our business for the future. Sales of new Sky boxes were the
highest for six years, Sky+ broke through the two million barrier and Sky
HD almost doubled in size after a strong Christmas sales period. With
over one in four of our customers now taking an additional service from
Sky, more people are choosing more of our products than ever before.
"At the end of our first full quarter as a broadband provider, benefits
are starting to flow through the business. Sky Broadband is attracting
new and existing customers with more than two-thirds opting for our
faster, paid-for products. The rollout of our all-IP broadband network is
progressing ahead of schedule. As a result, we now reach more households
than the entire U.K. cable network with our "See, Speak, Surf"
combination of TV, telephony and broadband products.
"We are committed to making a difference with energy efficiency and
climate change. Sky was recognised recently as a National Energy
Efficiency Champion and I want to thank all our staff for making this
possible.
"In 2007, we will continue to drive towards our goal of being the leader
in entertainment and communications in the U.K. and Ireland. We're on
track for our targets and our expansion into broadband and telephony
positions us well to take advantage of a growing opportunity in a GBP20
billion industry."
(1) Broadband data stated as at 28 January 2007. As at 31 December 2006
gross bookings were 252,000 with 193,000 activated customers
(2) Adjusted gross margin excludes an exceptional gain from a third party
channel provider of GBP65 million, accounted for within programming
expenses
(3) Adjusted EPS excludes mark-to-market in derivative financial
instruments that do not qualify for hedge accounting, an exceptional
gain of GBP65 million and an exceptional charge of GBP6 million
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
Finsbury:
Alice Macandrew Tel: 020 7251 3801
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