SOURCE: British Sky Broadcasting Group PLC

May 02, 2012 02:05 ET

British Sky Broadcasting Group PLC Q3 2012 Results

MIDDLESEX, UK--(Marketwire - May 2, 2012) -

      Unaudited results for the nine months ended 31 March 2012

                   Adjusted results             Reported results
Nine months to   2012       2011    Variance  2012      2011    Variance
31 March

Revenue          GBP5,078m  GBP4,833m  +5%    GBP5,078m GBP4,833m  +5%
EBITDA           GBP1,161m  GBP1,030m  +13%   GBP1,192m GBP992m    +20%
Operating profit GBP908m    GBP790m    +15%   GBP939m   GBP752m    +25%
Earnings per     37.8p      30.5p      +24%   39.7p     30.3p      +31%

Strong financial performance
* Revenue up 5% to GBP5.1 billion
* Adjusted operating profit up 15% to GBP908 million
* Adjusted operating margin expansion of 160 bps to 17.9%
* Adjusted basic EPS up 24% to 37.8 pence
* Completed GBP387 million of GBP750 million buyback programme

Britain's favourite triple play provider
* Total quarterly net product growth of 904,000 to 27.7 million
* 78,000 net new households in the quarter to reach 10.55 million
* Largest base of triple play customers in Britain at 3.2 million,
  up 24% year-on-year
* Strongest ever quarter for home communications with 702,000 net
  broadband, telephony and line rental product additions

Consistently delivering the best experience for customers
* Ensuring continued excellence in sports coverage with successful
  launch of Sky Sports F1 HD and new long term agreements in golf and
* Bringing the best HD and 3D experience of the Olympics to Sky
* Leading broadband service getting even better with free
  out-of-home WiFi and launch of fibre products
* Huge choice of on demand content extended and now available to
  over five million Sky TV homes
* NOW TV on track for launch in first half of calendar 2012,
  widening the availability of Sky content on broadband-connected

Results highlights

Customer Metrics (unaudited)
                          As at      As at      Annual  Growth to
                          31-Mar-12  31-Mar-11  Growth  31-Mar-12

Total products ('000s)    27,734     24,591     +3,143  +904
  TV                      10,268     10,147     +121    +15
  HD                      4,222      3,686      +536    +159
  Multiroom               2,378      2,237      +141    +28
  Broadband               3,863      3,161      +702    +212
  Telephony               3,627      2,916      +711    +220
  Line rental             3,376      2,444      +932    +270

Total customers ('000s)   10,549     10,223     +326    +78

Products per customer     2.6        2.4        +0.2

Other metrics
Customers taking each
of TV, broadband & talk   31%        26%        +5%
ARPU (1)                  GBP546     GBP537     +GBP9
Churn (quarterly
annualised)               10.1%      10.4%

An additional KPI summary table containing further detailed disclosure
may be found in Schedule 1.

Business Performance(2)
GBP'millions                     9 months to   9 months to
                                 31-Mar-12     31-Mar-11     Movement

Revenue                          5,078         4,833         +5%
Adjusted operating profit        908           790           +15%
% Adjusted operating profit
margin                           17.9%         16.3%         +160 bps
Adjusted EBITDA                  1,161         1,030         +13%
Adjusted free cash flow          601           615           -2%
Adjusted basic earnings per
share (3)                        37.8p         30.5p         +24%

(1) Quarterly annualised. Calculations have been restated to include
    customers taking standalone home communications products and to
    reflect the impact of the Sky magazine closure.

(2) A reconciliation of adjusted operating profit and adjusted EBITDA
    from continuing operations to reported measures as well as cash
    generated from continuing operations to adjusted free cash flow from
    continuing operations is set out in Appendix 3.

(3) Adjusted basic EPS is calculated from adjusted profit from
    continuing operations for the period. A reconciliation of reported
    profit from continuing operations to adjusted profit from
    continuing operations is set out in note 4 to the consolidated
    financial information.

Jeremy Darroch, Chief Executive, commented:"We have made a good start
to 2012. In what remains a tough economic
environment, strong and consistent execution of our plan has delivered
good growth across our product range. We have grown revenues by 5%
while holding prices flat for customers and delivered a record
nine-month operating profit of GBP908 million alongside 24% growth in
earnings per share. The decision to focus our marketing on home
communications has paid off with our fastest quarter of growth since
launch and confirmation that Sky is now Britain's favourite triple play
provider."More households are choosing Sky and taking more products from us
because we're constantly looking to improve the quality and value that
we offer. Already in 2012, we've launched an entirely new channel
dedicated to Formula 1, given millions of households access to a huge
choice of on demand TV and made our market-leading broadband service
even better with the launch of our fibre products and free out-of-home
WiFi. Looking ahead, we will continue to improve our service for all
Sky customers as we believe this is the best way to build a larger
business and continue to increase returns for shareholders."


We have once again delivered a strong operational and financial
performance in the third quarter and first nine months driven by our
sustained customer focus and the growing breadth of our product range.
We are continuing to add to the customer experience through our
innovation while maintaining our tight focus on costs. This has
contributed to double digit growth in adjusted operating profit, growth
in adjusted basic earnings per share of 24%, and expansion of our
adjusted operating margin by 160bps to 17.9%.

Consumers are still facing a tough economic environment but customers
are continuing to take more products from us as they recognise the
great quality and value that Sky offers. We had our strongest quarter
ever for home communications with 702,000 net product additions and Sky
has now become Britain's favourite triple play provider. Net product
additions of 904,000 in the three months to 31st March 2012 ("the
quarter") were higher than both the prior year and the second quarter,
and took the total base to 27.7 million, up by 13% year on year. Within
this growth, we added 78,000 net new customer households. Churn at
10.1% was slightly lower than the prior year.

This operating performance has allowed us to deliver another strong set
of financial results. Revenue growth was 5% in the first nine months
despite freezing prices for customers and this, combined with our focus
on efficiency, translated into 15% growth in adjusted operating profit
and 24% growth in adjusted basic EPS. In addition, we have returned
GBP387 million to shareholders to date through our on-going GBP750
million share buyback programme.


Operational Performance
We added 904,000 total net products in the quarter, growing the base by
13% year on year to reach a total of 27.7 million products. Within
this, weadded 78,000 net new households with 63,000 new standalone
broadband customers and 15,000 TV customers. Our total customer base is
now 10.55 million, of which 281,000 are standalone broadband customers.
We have delivered growth across all product categories and customers
are now taking an average of 2.6 products each, double the figure of
five years ago.

We are continuing to see strong demand for home communications with
record net new product additions of 702,000 during the quarter,
including 212,000 broadband, 220,000 telephony and 270,000 line rental
net new customers. Our continued strong growth in home communications
has taken the number of customers with each of TV, broadband and
telephony ("triple play") to 3.2 million, up 24% year on year. Triple
play penetration of our customer base has now reached 31%. During the
quarter, we also added 277,000 customers to our own network, meaning
that 63% of our customers are now fully unbundled and, as a result, we
continue to improve the economics of our home communications business.

Total HD customers reached 4.2 million, with 159,000 net additions in
the quarter, an increase on the 138,000 net additions in the second
quarter. This reflected continued strongdemand for the product as
well as the launch of our new Sky Sports Formula 1 HD channel (now
included at no extra cost with an HD subscription). Our multiroom base
also grew by 28,000 to 2.4 million.
ARPU grew to a new high of GBP546 in the quarter, with the impact of
this year's price freeze more than offset by our success in selling our
home communications products to new and existing customers. While the
economic environment remains tough, we also saw good customer loyalty
with churn falling to 10.1% (from 10.4% last year) as customers
continue to recognise the value of our product range.

We continue to enhance our broadband service, providing further value
to our customers. In April, we launched our WiFi hotspots from The
Cloud service, giving internet access free of charge to Sky Broadband
Unlimited, Sky Fibre Unlimited and Sky Connect customers in over 10,000
hotspots across the UK, including major outlets such as Pizza Express,
Caffe Nero, Eat and Pret A Manger. We are currently adding over 200 new
live hotspots each week and new contracts with Greggs and London
Overground were agreed during the quarter. We also launched our new
fibre service in April, givingcustomers access to download speeds of
up to 38Mb and 76Mb for GBP20 and GBP30 a month, respectively.

Great customer service remains central to our offering. We remain
focused on improving product reliability and are providing
ever-improving levels of issue resolution. By continuing to encourage
customers to interact with us online we have also reduced our cost to
serve in our contact centres, with call volumes per customer in the
quarter down 10% versus the same period last year. Our progress in
making our customer service even better has again been validated by
Ofcom - their latest survey on broadband complaints showing that Sky
received the lowest level of complaints of any fixed broadband provider
in the UK.


We have had another quarter of strong on-screen performance as we
continue to invest in our entertainment channels and build on our
traditional strength in sports, news and movies.

We are continuing to invest in original British comedy and drama and
saw strong performances from some of our key commissions, notably
Treasure Island, the second biggest drama commission ever broadcast on
Sky 1, and Ruth Jones' new comedy-drama Stella, which was the best UK
comedy launch series in multi-channel history in terms of audience. The
returning series Got to Dance and Mad Dogs also performed well, as did
the US dramas Hawaii-Five-0, Spartacus and Touch. Forty-three
entertainment shows in the quarter generated an audience of at least
one million viewers, more than double the number in the same quarter
last year. Our success is being recognised by the industry: Sky 1 was
named Channel of the Year at the Broadcast Awards 2012 for the first
time ever, while Darren Boyd won Best TV Comedy Actor at the British
Comedy Awards for his performance in Spy.

As part of our previously announced commitment to original British
content, we are investing in feature-length British films for
television with two distinct and complementary strands: new films for
family audiences on Sky Movies and the best new documentary films on
Sky Atlantic. In addition, we recently acquired the rights to broadcast
all twenty-four James Bond films in high definition, as well as the
upcoming film, Skyfall. The deal will come into effect in October 2012,
coinciding with the 50th anniversary of the film franchise.

During the quarter we launched our dedicated Formula 1 channel, Sky
Sports F1, which has been very well received. The HD version (Sky
Sports F1 HD) contributed to the strong performance of HD product
additions in the quarter. The coverage has been critically acclaimed,
offering over 500 hours of programming, extra video and data through
the interactive 'Race Control' and streamed coverage on mobile, online
and tablet devices, with 5.9 million viewers having watched the channel
to date. Throughout the season Sky TV customers who subscribe to Sky
Sports 1 & 2 or the HD channels mix will have access to live
uninterrupted coverage of all 20 Grand Prix, including all practice and
qualifying sessions, as well as our weekly Friday night magazine show
and Steve Rider's legends series, available at no extra cost. This is
yet another example of Sky investing in fantastic content to provide
even better value for our customers while creating another reason for
others to consider pay TV for the first time.

Looking ahead to the summer of sports, we have signed innovative
agreements with the BBC and Eurosport which will mean that Sky homes
will have access to the most comprehensive coverage of this summer's
Olympics in HD and 3D. We will create 48 new channels (24 SD and 24 HD)
specifically for the Olympics, meaning that Sky+ homes will be able to
record the widest possible choice of Olympic events at a time that
suits them. In addition, more than five million homes with Sky+HD
set-top boxes will be able to watch the coverage in stunning high
definition. Eurosport will also broadcast over 100 hours of the Games
in 3D on Sky 3D.

We are continuing to grow our content relationships with channel
partners through Sky 3D, the UK's first and only dedicated 3D TV
channel which is enjoyed by over a quarter of a million Sky homes. As
well as our agreement with Eurosport for the Olympics, we will be
working with ESPN for the second year running to bring the FA Cup Final
in 3D to Sky 3D homes.

During the quarter we added further to the breadth of our sports
offering through long-term agreements in cricket and golf. We have
secured the rights to show all ICC tournaments to 2015, including the
Cricket World Cup, as well as an agreement to show the European Tour to
2018, including the Saturday and Sunday of the showpiece PGA
Championship at Wentworth and The Scottish Open (previously held by the

New Products and Services

We remain focused on improving portability of content by giving
customers seamless access to Sky content on the move. Our services have
been well-received and we have added to them further during the

Sky Go continues to grow. We broadened the distribution in February,
making it available on the Android platform, now the most popular
smartphone platform in the UK. We also increased the channel line-up in
the quarter with the addition of Sky 1, Sky Living, Sky Atlantic, Sky
Arts 1and Sky Sports F1. This enhanced offering has contributed to Sky
Go reaching 2.6 million unique users in the quarter, up 24% from the
second quarter (2.1 million).

Over five million Sky customers can now access a huge range of on
demand content via Anytime+ after we made the service available to all
HD boxes irrespective of their ISP. In addition, we introduced an
enhanced new Sky+HD box in the quarter, adding even more flexibility
for customers by increasing in-home storage capacity from 0.5TB to 1TB.
Alongside the existing 1TB of personal storage, there is now a full
additional terabyte of space dedicated to Sky Anytime showing the best
of the week's Sky TV and Movies. We also launched Sky Store in January,
our on demand rentals service, giving customers a choice of over 1,000
movies, including new releases just out on DVD and a whole library of
favourites, all available to rent instantly.

Launch of NOW TV service in 2012

In March we announced that our new over-the-top internet TV service
will be called NOW TV and is on track to launch in the first half of
calendar 2012. The growth of broadband-connected devices is opening up
new opportunities to retail our content directly to additional
consumers, and this service will sit alongside our current subscription
pay TV service and be aimed at the 13 million UK households who do not
currently subscribe to pay TV. NOW TV will provide instant access to
some of our most popular content with no dish and no contract required,
and will be available on a wide range of devices. The service will
initially offer access to our movie content but will soon expand to
include sport and entertainment, with customers able to pay monthly or
on a simple pay-as-you-go-basis. This will be a new way for us to
appeal to consumers who love great content but may not want the full
Sky service, while offering us another new opportunity for customer

The Bigger Picture

As part of our commitment to making a positive contribution to the
community, we delivered a number of initiatives this quarter through
our Bigger Picture programme, which focuses on environment, sport and
the arts.

To support our Sky Rainforest Rescue campaign in partnership with WWF,
we launched a new TV advert during the quarter to highlight how
customers can join in and contribute to helping protect the rainforest.
We also supported WWF's Earth Hour in March with a weekend of dedicated
environment programming across Sky channels, including the premier of
the 3D documentary Secret Life of the Rainforest.

Through our partnership with British Cycling, which aims to increase
participation in the sport, our pro cycling team 'Team Sky' began their
third year on the road with their best start to a season to date with
Bradley Wiggins winning the Paris-Nice and last week's Tour de
Romandie. We are also delighted to be announcing the extension of our
ground-breaking partnership with British Cycling today for a further
four years to the end of 2016, building on our support for the sport
from grassroots to elite. Our activity has already seen almost 700,000
people take up cycling regularly to date.

In February, we announced the first Sky Arts Ignition Series project
with Sky funding the creation of a brand new work of art by renowned
video artist Doug Aitken in partnership with Tate Liverpool.

In recognition of our work across the Bigger Picture, we have increased
our score on Business in the Community's (BitC's) Corporate
Responsibility Index, achieving 98% and once again earning a Platinum
rating. Sky had the highest score in the Media and Entertainment


We have delivered a strong financial performance in the nine months to
31 March 2012 ("the period"). Revenue growth of 5% combined with
continued progress on costs led to a 15% increase in adjusted operating
profit to GBP908 million. Our focus on efficiency contributed to an
absolute reduction in other operating costs, contributing to further
operating margin expansion of 160 basis points to reach 17.9%. Together
with the recognition of some historic tax losses in the period,
adjusted basic EPS was up by 24%.

Unless otherwise stated, all figures and growth rates included within
the financial section exclude exceptional items and are from continuing


Group revenue increased by 5% to GBP5,078 million (2011: GBP4,833
million), with good growth in both retail and wholesale operations more
than offsetting continued headwinds in advertising and Sky Business.

Retail subscription revenue grew by 4% to GBP4,172 million (2011:
GBP4,009 million), with strong demand from customers for our products
combined with an overall larger customer base. This increase was also
despite our decision to freeze subscription prices.

Wholesale subscription revenue increased by 10% to GBP259 million (2011:
GBP236 million) as demand for our channels and their HD versions
continued to increase across other platforms.

Advertising revenue was 4% lower year on year at GBP334 million (2011:
GBP348 million). This reduction results from a combination of a lower
overall TV advertising market and higher payments to the third party
pay TV channels represented by Sky Media in the period, due to improved
ratings for their channels.The performance of our media partners has
contributed to our share of total UK advertising revenue increasing to
20.9%. In the fiscal third quarter we performed in line with the
market, which we estimate was broadly flat.

Installation, hardware and service revenue was lower year on year at
GBP76 million (2011: GBP89 million), reflecting fewer engineer visits as
a result of our work to increase the reliability of set-top boxes and
the introduction of a free installation for customers moving home.

Other revenue was 57% higher at GBP237 million (2011: GBP151 million).
The increase includes GBP46 million from the sale of set-top boxes to
Sky Italia, for which the corresponding cost is recognised in subscriber
management and supply chain. Excluding this, other revenue was up by
28% benefiting from continued strong performance in Sky Bet and the
inclusion of GBP14 million from the consolidation of 'The Cloud'
acquired on 23rd February 2011).

Direct Costs

Programming costs increased by 5% to GBP1,709 million (2011: GBP1,621
million). More than half of the year on year increase was attributable
to entertainment costs, which included a full nine months of Sky
Atlantic programming as well as increased investment in original UK
content. Third party channel costs were GBP22 million higher as a result
of launching a further four HD channels in the period and 15% growth in
HD customers. Sports costs were higher year on year with the first time
inclusion of the Formula 1 channel, and movies costs were broadly flat.

Direct network costs increased by 22% to GBP510 million (2011: GBP418
million) due to increased scale in the business and the 28% growth in
home communications products. Gross margin of our home communications
products improved as a result of revenue growth and cost savings
achieved, as a greater proportion of customers are unbundled onto our
own network.

Other Operating Costs

We have delivered another strong performance in costs, where efficiency
programmes have contributed to a 3% reduction in other operating costs
for the period to GBP1,951 million (2011: GBP2,004 million) and 310
basis points of margin improvement year on year.

Marketing costs fell by 11% to GBP797 million (2011: GBP893 million) as
a result of our decision to close the printed Sky customer magazine,
fewer gross additions in the period, and a reduction in above-the-line
advertising costs.

Subscriber management and supply chain costs increased by GBP51 million
year on year to GBP483 million (2011: GBP432 million). The largest
contributor to the increase was the cost of sales of set-top boxes to
Sky Italia (corresponding revenue recorded within other revenue) from
which we both derive both scale benefits and a small positive profit
margin. Excluding the impact from these box sales, subscriber
management and supply costs increased by 2% year on year, a lower rate
than customer volume growth.

Transmission, technology and fixed network costs were GBP5 million lower
at GBP288 million (2011: GBP293 million) as a result of favourable
negotiations with suppliers and improved broadcasting efficiency due to
the move to tapeless production within Sky Studios.

Administration costs fell by GBP3 million to GBP383 million(2011:
GBP386 million) with a lower non-cash IFRS 2 'Share-based payment'
charge and associated National Insurance costs than in the prior year
as a result of the phasing of our share-incentive plans.


On an adjusted basis, profit before tax was GBP853 million (2011: GBP727
million), which included the Group's share of joint ventures and
associates' profits of GBP25 million (2011: GBP26 million) and a net
interest charge of GBP80 million (2011: GBP89 million).

Adjusted taxation for the period was GBP198 million (2011: GBP195
million),benefitting from the recognition in the third quarter of
approximately GBP26 million of tax losses, largely inherited at the
time of the acquisition of Sky's core network, formerly part of
Easynet, in 2006. As a result of this, and the lower statutory rate of
corporation tax announced in the Budget on 21 March 2012, we now expect
the full year adjusted tax rate to be around 24% (2011: 27%).

Adjusted profit for the period was GBP655 million (2011: GBP532
million), generating an adjusted basic earnings per share from
continuing operations of 37.8 pence (2011: 30.5 pence).

Over the period the weighted average number of shares excluding those
held by the Employee Share Ownership Plan for the settlement of
employee share awards was 1,734 million. The number of shares at the
end of the period was 1,709 million.

Cash Flow and Financial Position

Adjusted free cash flow was GBP601 million (2011: GBP615 million) due to
the first time inclusion of rights payments made to Formula 1 at the
start of its season, a one off benefit in the prior year due to the VAT
increase on 1st January 2011, and the quarter end falling a week later
than in the prior year.

Net debt as at 31 March 2012 was GBP723 million (2011: GBP817 million).
Shares repurchased to date under the approved GBP750 million share
repurchase plan totalled GBP387 million, of which GBP220 million was
completed in the third quarter. The interim dividend payment of GBP157
million was paid to shareholders on 24th April 2012.

Exceptional Items

Reported operating profit of GBP939 million included a net benefit of
GBP31 million being a break fee from News Corporation offset by related

Reported profit after tax of GBP689 million also included an exceptional
gain of GBP13 million relating to the re-measurement of derivative
financial instruments not qualifying for hedge accounting (2011: GBP16
million gain), a profit on disposal of our stake in Chelsea Digital
Media of GBP7 million, a GBP5 million charge due to writing off the
fees relating to the previous revolving credit facility, and a GBP12
million charge relating to the tax effect on exceptional items.


Announcement of changes to the Board

On 3rd April 2012, the Board announced that James Murdoch had stepped
down as Chairman of BSkyB and would continue to serve in his capacity
as a Non-Executive Director of the Company. Mr Murdoch was succeeded
as Chairman by Nicholas Ferguson, who was appointed as a Director of
the Company in June 2004 and previously served as Deputy Chairman and
Senior Independent Non-Executive Director. Tom Mockridge, who joined
the Board in February 2009, was appointed as Deputy Chairman. Andrew
Higginson, who has been a Director of BSkyB since September 2004,
succeeded Nicholas Ferguson as Senior Independent Non-Executive

With effect from 1st May 2012 the following Board committee changes
have taken place. Daniel Rimer was appointed Chairman of the
Remuneration Committee in place of Nicholas Ferguson, who remains a
member of the Committee. Martin Gilbert was appointed as a member of
the Remuneration Committee.

Andrew Higginson was appointed Chairman of the Corporate Governance &
Nominations Committee in place of Lord Wilson, who remains a member of
the Committee. Daniel Rimer was appointed as a member of the Corporate
Governance & Nominations Committee. Matthieu Pigasse was appointed as a
member of the Audit Committee.

James Murdoch was appointed Chairman of the Bigger Picture Committee in
place of Dame Gail Rebuck, who has stepped down as Chairman and as a
member of the Committee.

With effect from 1st June 2012 Martin Gilbert will be appointed as a
member of the Audit Committee.

Sky News

Following the close of the quarter, we concluded a review of editorial
practices at Sky News. While there has been no allegation of
impropriety at Sky News, the Company undertook the review at its
instigation as part of its commitment to acting responsibly across all
areas of our business. Reporting to the Audit Committee, the process
involved the review of Sky News payment records by our internal audit
team and a review of emails by our external legal advisors, Herbert
Smith. These reviews found no evidence of impropriety or cause for

Separately, the Audit Committee has reviewed the Company's approach to
two separate investigations undertaken by Sky News in which a Sky News
journalist accessed the email of individuals suspected of criminal
activity. Following a thorough review of each of those cases, we are
satisfied that the action was justified in the public interest and
subject to proper editorial oversight.


On 25th April 2012, the Group acquired Acetrax, a small over-the-top
(OTT) internet TV provider, which provides a transactional video on
demand service to a wide range of internet-connected devices.The
acquisition will support the continued development of Sky's OTT
activities and further strengthen relationships with connected device
manufacturers and content providers. Acetrax's gross assets as at 31st
December 2011 were GBP2.3 million.


On 26th April 2012, Ofcom stated publicly that it is gathering evidence
as part of its on-going assessment of whether BSkyB is fit and proper
to hold its broadcasting licences, focusing in particular on events at
News Group Newspapers that it believes may be relevant. The company is
engaging with Ofcom in this process and continues to believe that it
remains a fit and proper licence holder, as demonstrated by its
positive contribution to UK audiences, employment and the broader
economy, as well as its strong record of regulatory compliance and high
standards of governance.

Schedule 1 - KPI Summary

All figures
(000)unless  FY09/10             FY10/11                   FY11/12
            Q3     Q4     Q1     Q2     Q3     Q4     Q1     Q2     Q3

Total     9,770  9,868  9,979  10,150 10,223 10,294 10,371 10,471 10,549

Total     20,549 21,597 22,586 23,790 24,591 25,375 26,058 26,830 27,734
Television9,770  9,860  9,956  10,096 10,147 10,187 10,213 10,253 10,268
Sky+HD    2,510  2,939  3,154  3,497  3,686  3,822  3,925  4,063  4,222
Multiroom 2,062  2,121  2,158  2,219  2,237  2,250  2,295  2,350  2,378
Broadband 2,505  2,624  2,802  3,006  3,161  3,335  3,485  3,651  3,863
Telephony 2,230  2,367  2,570  2,757  2,916  3,101  3,248  3,407  3,627
Line      1,472  1,686  1,946  2,215  2,444  2,680  2,892  3,106  3,376

% of
taking TV, 20%    21%    23%    24%    26%    27%    28%    29%    31%
and Talk
ARPU (GBP) GBP    GBP    GBP    GBP    GBP    GBP    GBP    GBP    GBP
           499    504    510    536    537    538    535    544    546
Churn -
quarterly  9.9%   10.5%  11.2%  9.5%   10.4%  10.4%  11.1%  9.6%   10.1%

On-net     2,187  2,288  2,450  2,659  2,856  3,045  3,205  3,403  3,636
MPF base   664    883    1,064  1,247  1,435  1,686  1,869  2,146  2,423
SMPF base  1,523  1,405  1,386  1,412  1,421  1,359  1,336  1,257  1,213

MPF %      30%    39%    43%    47%    50%    55%    58%    63%    67%
SMPF %     70%    61%    57%    53%    50%    45%    42%    37%    33%

Off-net    318    336    352    347    305    290    280    248    227

Total      2,505  2,624  2,802  3,006  3,161  3,335  3,485  3,651  3,863

On-net %   87%    87%    87%    88%    90%    91%    92%    93%    94%

exchanges  -      6      94     141    115    28     155    175    57
(actual figs)
Total LLU
exchanges  1,193  1,199  1,293  1,434  1,549  1,577  1,732  1,907  1,964
(actual figs)



Francesca Pierce     Tel: 020 7032 3337
Edward Steel         Tel: 020 7032 2093
Lang Messer          Tel: 020 7032 2657



Robert Fraser        Tel: 020 7705 3000
Stephen Gaynor       Tel: 020 7705 3000


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the associated PDF document. 

A conference call for UK and European analysts and investors will be
held at 08.30 a.m. (BST) today. Participants must register by
contacting Yasmin Charabati on +44 20 7251 3801 or at . In addition, the live conference
calls and supporting materials will be available via  and subsequently available for replay.

There will be a separate conference call for US analysts and investors
at 10.00 a.m. (EDT) today. Details of this call have been sent to US
institutions and can be obtained from Dana Diver at Taylor Rafferty on
+1 212 889 4350. A live conference call and supporting materials will
be available on Sky's corporate website, .
A replay will subsequently be available.

Use of measures not defined under IFRS

This press release contains certain information on the Group's
financial position, results and cash flows that have been derived from
measures calculated in accordance with IFRS. This information should
not be read in isolation from the related IFRS measures.

Forward looking statements

This document contains certain forward looking statements with respect
to the Group's financial condition, results of operations and business
and management's strategy, plans and objectives for the Group. These
statements include, without limitation, those that express forecasts,
expectations and projection, such as forecasts, expectations and
projections in relation to new products and services, revenue, costs,
advertising growth, churn, profit, cash flow, product penetration, our
broadband network footprint, content, wholesale, marketing and capital
expenditure and returns to shareholders.

Although the Company believes that the expectations reflected in such
forward looking statements are reasonable, these statements are not
guarantees of future performance and are subject to risks,
uncertainties and other factors, some of which are beyond our control,
are difficult to predict and could cause actual results to differ
materially from those expressed or implied or forecast in the forward
looking statements. Information on the significant risks and
uncertainties are described in the "Principal risks and uncertainties"
section of Sky's Annual Report for the full year ended 30 June 2011 (as
updated in Sky's results for the six months ended 31 December 2011).
Copies of the Annual Report and 31 December 2011 results are available
from the British Sky Broadcasting Group plc web page at 

All forward looking statements in this document are based on
information known to the Group on the date hereof. The Group undertakes
no obligation publicly to update or revise any forward looking
statements, whether as a result of new information, future events or

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


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