Middlesex, UK -- (MARKET WIRE) -- May 2, 2007 --
BRITISH SKY BROADCASTING GROUP PLC
Results for the nine months ended 31 March 2007
Customer response to "See, Speak, Surf" and Sky+ drives record product sales in
the third quarter
More customers are choosing more of Sky's products than ever before
- New customer additions of 340,000 in the third quarter, up 25% year-on-
year
- Net customer growth of 51,000, up 28% year-on-year to 8.492 million
- Third quarter growth in Sky+ households of 199,000, up 34% year-on-year
to 2.167 million, 25% penetration target exceeded three years ahead of
plan
- HD subscribers of 244,000 within 10 months, third quarter growth of
60,000
- Sky Broadband customers more than double to 553,000 with gross bookings
of 669,000 by 29 April 2007(1)
- Sky Talk customers increase by 83% to 408,000(1)
- 974 exchanges unbundled, 61% coverage of the U.K.(1)
Strong top-line growth and accelerating underlying operating profit growth
- Revenue increased by 10% to GBP3,376 million, including GBP41 million
from residential broadband and GBP117 million from Easynet Enterprise
- Adjusted gross margin excluding residential broadband and Easynet
Enterprise of 62% up from 60% in the comparable period(2)
- EBITDA of GBP750 million (2006: GBP756 million) including a net
exceptional gain of GBP56 million
- Operating profit of GBP613 million including losses of GBP137 million in
residential broadband and Easynet Enterprise and a net exceptional gain
of GBP56 million
- Underlying operating profit up by 4% to GBP694 million (excluding
residential broadband, Easynet Enterprise and exceptional items), an
increase of 8% year-on-year in the third quarter
- Basic EPS of 22.1p (2006: 23.2p) and adjusted EPS of 19.5p (2006: 23.3p)
(3)
James Murdoch, Chief Executive said:
"Customer response to our "See, Speak, Surf" campaign has been very encouraging.
Total sales of our TV, broadband and telephony products surpassed one million
for the second consecutive quarter and now exceed three million in the year to
date, an increase of more than 50% on the prior year and almost double that of
two years ago.
"In just eight months, Sky Broadband has passed the milestone of 500,000
customers who are enjoying fast speeds, wireless access and significant
savings. Our network now reaches over 60% of U.K. homes and we are on track for
our goal of more than 700,000 broadband customers by the end of June.
"Our investments in customer service, value and quality are driving more
customers to choose more services from Sky than ever before.
"Changes to our retention and acquisition strategy are delivering valuable
benefits to the quality and profitability of our business. We are delivering on
our multi-product strategy and customers are responding in record numbers."
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
8:30 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,
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
webcast of this call and replay facility will be available on Sky's corporate
website,
http://www.sky.com/corporate.
(1) Data stated as at 29 April 2007. As at 31 March 2007 there were
574,000 Sky Broadband gross bookings, 457,000 activated broadband
customers and 355,000 Sky Talk customers
(2) Adjusted gross margin excludes an exceptional gain from a third party
channel provider of £65 million, included 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 £65 million and an exceptional charge of £9 million
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