SOURCE: British Sky Broadcasting Group PLC

August 03, 2005 02:01 ET

British Sky Broadcasting Group Plc Results for the twelve months ended 30 June 2005

Middlesex, UK -- (MARKET WIRE) -- August 3, 2005 --

                                                          3 August 2005

                          BRITISH SKY BROADCASTING GROUP PLC
                Results for the twelve months ended 30 June 2005

  BSkyB announces total revenue of over GBP4 billion, record profits and 
              year on year growth in gross subscriber additions

Operating highlights

- Net DTH subscriber growth of 83,000 (2004: 81,000) in the quarter to
  7.8 million (2004: 7.4 million)

- Sky+ households increased by 118,000 (2004: 75,000) in the quarter to
  888,000 (2004: 397,000)

- Multiroom households increased by 82,000 (2004: 23,000) in the quarter
  to 645,000 (2004: 293,000)

Financial highlights

- Turnover increased by 11% to GBP4,048 million

- Operating profit before goodwill and exceptional items increased by 34%
  to GBP805 million, a margin of 20%

- Profit after tax increased by 32% to GBP425 million

- Earnings per share before goodwill and exceptional items increased by
  58% to 29.0 pence

- Proposed final dividend of 5 pence per share generating a full year
  dividend of 9 pence per share

James Murdoch, Chief Executive said:

"The team delivered a set of results this year that demonstrates the 
health of our business and the strong position that the Company occupies 
in this rapidly evolving marketplace. We remain focused on providing the 
leading entertainment service in the UK and Ireland that continues to meet 
the changing needs of our customers and their families, offering great value 
and world-beating quality. In a highly competitive environment, we are 
confident in our ability to achieve our goals"

Results highlights

Key subscriber information        2005      2004   Change  % Change

Net DTH subscriber              83,000    81,000    2,000        2%
additions(1)   
Total DTH subscribers(2)     7,787,000 7,355,000  432,000        6%

Net Sky+ household             118,000    75,000   43,000       57%
additions(1)
Total Sky+ households(2)       888,000   397,000  491,000      124%

Net Multiroom household         82,000    23,000   59,000      257%
additions(1)
Total Multiroom households(2)  645,000   293,000  352,000      120%


Profit and loss account               Twelve months to 30 June
(GBPm)
                                  2005      2004   Change  % Change

Turnover                         4,048     3,656      392       11%

Operating profit before
goodwill and                       805       600      205       34%
exceptional items(3)
Operating profit margin
before goodwill                   19.9%     16.4%     3.5%      21%
and exceptional items

Profit before taxation,
goodwill and                       757       514      243       47%
exceptional items(3)

Profit after taxation
before goodwill and                555       356      199       56%
exceptional items(3)

Profit after taxation              425       322      103       32%


Cash flow information (GBPm)           Twelve months to 30 June

                                  2005      2004   Change  % Change


Operating cash inflow              978       882       96       11%

Net debt                           379       429      -50      -12%

Per share information(pence)          Twelve months to 30 June

                                  2005      2004   Change  % Change


Earnings per share before
goodwill and                      29.0      18.3     10.7       58%
exceptional items(3)

Earnings per share                22.2      16.6      5.6       34%

1.  In the three months to 30 June
2.  As at 30 June
3.  The reconciliation to the nearest equivalent GAAP measure can be found
    in Appendix 2

Enquiries:

Analysts/Investors:

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

E-mail: investor-relations@bskyb.com

Press:

Julian Eccles                         Tel: 020 7705 3267
Robert Fraser                         Tel: 020 7705 3036

E-mail: corporate.communications@bskyb.com

Finsbury:

Alice Macandrew                       Tel: 020 7251 3801


There will be a presentation to analysts and investors at 9:30 a.m. 
(BST) today at Goldman Sachs, River Court Conference & Training Centre,
 7th Floor, River Court, 120 Fleet Street, London EC4A 2BB and a press 
conference at 11:30 a.m. at the same venue.

A conference call for US analysts and investors will be held at 10:00 a.m. 
EST today. Details of the call have been sent to US institutions and can 
be obtained from John Sutton at Taylor Rafferty on +1 212 889 4350.

A live webcast of the presentation to analysts and investors, together 
with this presentation will be available today on Sky's website, which 
may be found at www.sky.com/corporate.

Interviews with James Murdoch, CEO, and Jeremy Darroch, CFO, in video, 
audio and text, are available from Sky's website and at www.cantos.com.

OPERATING REVIEW

At 30 June 2005, the total number of direct-to-home ("DTH") digital 
satellite subscribers in the UK and Ireland was 7,787,000, representing 
a net increase of 83,000 subscribers in the three months to 30 June 2005 
("the quarter"). During the year, the number of subscribers to one or 
more premium channels increased by over 250,000 to 5,619,000. The Group 
remains on track to achieve its target of eight million DTH subscribers 
by 31 December 2005.

The Group recorded gross DTH subscriber additions in the quarter of 
303,000, reflecting further progress since the launch of a number of 
strategic initiatives, including the 'What do you want to watch?' 
marketing campaign on 1 October 2004, and despite a more challenging 
consumer environment.

The total number of Sky+ households increased by 118,000 in the quarter to
888,000, reflecting an 11% penetration of total DTH subscribers. Since
relaunching with a revised pricing structure in October 2003, the number 
of Sky+ subscribers has increased at an average rate of 110,000 every 
quarter, equal to the growth in total DTH subscribers over the same period. 
This product continues to receive high satisfaction ratings and attract 
new customers to Sky with 14% of new additions in the quarter taking Sky+.

The total number of Multiroom households has more than doubled year on year, 
increasing by 82,000 in the quarter to 645,000, 8% penetration of total 
DTH subscribers.

DTH churn for the quarter (annualised) was in-line with the fourth quarter 
of last year at 10.5% and down from 11.1% for the previous quarter. Churn 
for the twelve months ended 30 June 2005 ("the year") was 10.3%, in-line 
with the Group's stated goal of around 10%.

Annualised average revenue per DTH subscriber ("ARPU") in the quarter was 
GBP384, GBP2 higher than the previous quarter reflecting increased Multiroom 
subscriptions, a greater number of pay-per-view ("PPV") events and higher 
net revenues from SkyBet.

During the year the business delivered a set of initiatives to further 
extend the range of products and services available to its customers.

- Today, Sky is announcing the introduction of the 'Sky Gnome', an
  innovative portable and wireless device that will enable customers to  
  listen to the audio output from their favourite digital TV and radio 
  channels throughout the home.

- In June 2005, Sky announced a simplified pricing and packaging
  structure that offers customers increased choice and flexibility. The 
  basic-tier package will be replaced by six distinct "genre-mixes" 
  allowing customers to select various combinations of basic-tier 
  channels alongside premium sports and movies. Whilst increasing the 
  number of available packages fivefold, Sky also reduced the number of 
  price points from 96 to 15.

- Before the end of this calendar year, customers who subscribe to a
  top-tier package and have a broadband internet connection will be able 
  to download movies 'on-demand' and enjoy Sky Sports programming through 
  their PC free of charge. Initially planned to launch with over 200 
  movies, which will increase over time, customers will be able to browse 
  and download movies, trailers, behind the scenes footage and reviews at 
  any time through an easy to use, intuitive application. From day one, 
  over 5 million Sky Sports  subscribers will have access to highlights 
  from all their favourite sports, including Barclays Premier League and 
  UEFA Champions League football, rugby, golf and cricket. As an added 
  benefit, Sky World customers will also be able to receive the latest 
  video updates from Sky News and Sky Sports News via their mobile phone.

- In October 2004, Sky added Sky+160 to its product portfolio. This
  product offers customers around four times as much storage as the 
  standard Sky+box and has two USB connections, increasing its 
  compatibility for future developments.

- At the same time, Sky launched a new freesat service offering customers
  around 200 television and radio channels and interactive services for a 
  one-off fee. This provides an attractively priced alternative for 
  approximately 50% of UK households who either cannot receive Freeview 
  or require an aerial upgrade.

- Following on from the success of Sky+, Sky plans to launch Europe's
  most comprehensive high definition television service ("HDTV") in the 
  first half of calendar year 2006. Good progress was made during the 
  year building the required broadcast infrastructure and facilities and 
  developing the HDTV box, which has the connectivity and flexibility to 
  offer advanced services in the future. This service will initially 
  comprise a number of HD channels, including sports, movies and 
  documentaries and will offer customers the ultimate TV experience.

- Sky Sports share of viewing (according to viewing figures from 
  the Broadcasters Audience Research Board ("BARB")) in UK 
  television homes was 12% higher than the same quarter last 
  financial year, with England playing Australia in cricket's NatWest 
  Challenge and the British and Irish Lions tour of New Zealand both 
  achieving record audience figures. During the year, Sky concluded a 
  number of major sports agreements including:

  -  Exclusive live rights from the England and Wales Cricket Board to
     broadcast all international and the primary domestic cricket series 
     in England and Wales until 2009
  -  Exclusive live rights from the Rugby Football Union to broadcast
     England's Autumn Internationals and Zurich Premiership matches until 
     2010
  -  Exclusive live rights to the European Rugby Cup until 2010
  -  Exclusive live rights from the Football League to broadcast around 
     100 matches per season from the League's competitions until 2009

  In addition to these, Sky Sports also added coverage of equestrian events,
  international netball, badminton and yachting to further increase the range 
  of programming on its dedicated channels, which includes coverage of over 
  150 different sporting disciplines.

- During the year, Sky made progress in the renegotiation of three major  
  movie studio contracts, focusing on better quality, better rights and 
  improved value. Sky Movies screens over 450 different films every week 
  across its 11 multiplex screens, offering unrivalled choice and 
  convenient viewing.

- Named as 'News Channel of the Year' by the Royal Television Society for
  the fourth year running, Sky News remains the UK's leading news channel 
  both in terms of ratings and critical acclaim. Later this year, Sky 
  News will unveil a new on-air look and schedule when it begins 
  broadcasting from its recently completed state-of-the-art studio 
  complex at Sky's main campus in Osterley.

- Sky One relaunched in September 2004 with a new on-air look and strong
  line-up of acquired and commissioned programming. The channel's 
  commitment to offer modern, quality programming is reflected by a 3.9% 
  increase in the share of viewing by ABC1 adults in network homes in the 
  first half of calendar year 2005. The upcoming Autumn schedule features 
  a strong line-up with 'Nip/Tuck' returning in a two series exclusive 
  agreement, the second co-produced series of the '4400' and new US drama 
  series 'Weeds' and 'Threshold'.



FINANCIAL REVIEW

Total revenue for the year increased by 11% over the year ended 30 
June 2004 ("the comparable period") to GBP4,048 million. Operating profit 
before goodwill and exceptional items increased by 34% on the comparable 
period to GBP805 million, resulting in operating profit margin before 
goodwill and exceptional items of 20%, up from 16% for the comparable 
period.

The Group generated earnings per share before goodwill and exceptional 
items of 29.0 pence, up from 18.3 pence for the comparable period, and 
returned a total of GBP551 million to shareholders through an ordinary 
dividend and a share buy-back programme.

Revenue

Total revenues increased by 11% on the comparable period to GBP4,048 million.

DTH revenues increased by 12% on the comparable period to GBP2,968 million. 
This was mainly driven by 6% growth in the average number of DTH subscribers 
and a 5% increase in the average revenue per DTH subscriber, mainly as a 
result of the January and September 2004 price rises and increased Multiroom 
subscription revenues.

Wholesale revenues increased by 2% on the comparable period to GBP219 
million. After adjusting for a one-off receipt of monies from NTL following 
an audit of sums due to the Group in the first quarter of last financial year, 
this represents a 5% increase on the comparable period. This has primarily 
been driven by the changes to wholesale prices in January and September 2004 
and the payment for carriage of Sky Sports Extra and PREMPLUS.

Advertising revenues increased by 5% on the comparable period to GBP329 
million. This has been driven by 4% growth in the UK television advertising 
sector and continued growth in the Group's share of this sector.

Total SkyBet revenue for the year was GBP261 million, a 37% increase on the 
comparable period. Gross margin increased from 8% to 10% driven by the
introduction of fixed odds games during the year, such as roulette and
multi-line slot games. On 8 April 2005, the Gambling Act was passed by
Parliament. Once implemented, the Act will present an opportunity to offer
'gaming' services combining TV and interactivity. 'Gaming' includes games of 
chance and skill and therefore the Act will permit the launch of true casino 
games such as poker, in addition to the fixed odds games already available on 
SkyBet.

The SkyBuy retail service was wound down and closed during the year. This,
together with the expiry of a number of historical interactive contracts and 
services led to a reduction in Sky Active revenues of GBP24 million to GBP92 
million. Underlying revenues (excluding these items) rose by 10% to  GBP87
million, reflecting the growth in areas such as interactive advertising,  
games and third party betting and gaming.

Programming costs

Total programming costs decreased by GBP75 million on the comparable period to 
GBP1,636 million. This reduction has been primarily driven by contractual  
savings in the renewal of sports contracts and the benefit of improved rates at  
which the group is able to purchase US dollars to satisfy its movie commitments.

Sports costs, which represent 46% of total programming costs, decreased by 
GBP56 million on the comparable period to GBP747 million. The renewal of the 
FA Premier League and Football Association contracts led to substantially all 
of this reduction which was partly offset by the Ryder Cup, a bi-annual event 
and investment in production costs behind increased coverage in a number of 
sports, most notably football, with an increase of 32 live Barclays Premiership 
games and delayed footage or extended highlights of every Barclays Premiership 
match through the Football First service.

Movie costs decreased by GBP37 million on the comparable period to GBP356 
million primarily due to an improved rate at which the Group's US dollar 
denominated movies were amortised as a result of the weaker dollar. Savings 
from the renewal of a non-major studio agreement were offset by the additional 
costs associated with an increase in the average number of movie subscribers.

News and entertainment costs were GBP171 million, an increase of GBP16 million 
on the comparable period. This increase is primarily due to the higher operating 
costs of Sky News following the commencement of the contract to supply news to 
'five' and the coverage of the Tsunami disaster and the elections at home and 
abroad. After adjusting for the GBP17 million accelerated stock amortisation 
charge in the final quarter of last financial year, entertainment costs increased 
by 22% on the comparable period. This increase reflects the greater investment in 
acquired and commissioned programming for Sky One.

Third party channel costs increased by 1% on the comparable period to GBP362 million, 
representing a 6% increase in the average number of DTH subscribers offset by a 6% 
reduction in the cost per subscriber. This saving has been primarily been driven by 
the renewal of our contracts on improved terms and the termination of our contract 
with Granada Sky Broadcasting ("GSB"), slightly offset by new channels joining the 
pay-TV line-up, including FX, Turner Classic Movies ("TCM") and UKTV Style Gardens.

Gross margin (defined as total revenues less total programming costs) for the year 
was 60%, representing an increase of 7 percentage points on the comparable period.

Other operating costs

Total other operating costs before goodwill and exceptional items increased by 
GBP262 million on the comparable period to GBP1,607 million.

Transmission and related costs for the year were GBP171 million, an increase of 
GBP25 million on the comparable period reflecting higher engineering, broadcast 
support and maintenance costs associated with an expanding broadcast infrastructure, 
resulting from projects including the creation of the new Sky News Centre and the 
Advanced Technology Centre ("ATC").

Marketing costs increased by GBP119 million to GBP515 million, 13% of total revenue, 
equal to the average rate over the last three years. During the year, the Group 
launched a number of marketing initiatives to attract new subscribers and drive the 
penetration of the yield enhancing Sky+ and Multiroom products. This increase reflects 
the strong growth in the number of gross additions, with three times as many new joiners 
taking Sky+ from the outset compared to last year. As a consequence of this activity, 
the blended subscriber acquisition cost ("SAC") for the year was GBP237. The number of 
existing customers upgrading to Sky+ increased by over 40% year on year and the 
number upgrading to Multiroom increased by almost 150% over the same period. 
These products generate high levels of satisfaction and offer an attractive return on 
investment through lower churn and a higher propensity to take premium packages and 
multiple subscriptions. Above the line marketing costs for the year were GBP74 million, 
an increase of 50% on the comparable period as a result of the continuation of the 'What 
do you want to watch?' campaign and marketing of the new Sky One schedule.

Subscriber management costs increased by GBP25 million on the comparable period to 
GBP396 million. This reflects the growing subscriber base, increased call volumes due 
to higher levels of sales activity and a higher level of Sky+ and Multiroom installations.

Administration costs before goodwill and exceptional items increased by GBP32 million 
on the comparable period to GBP289 million, mainly due to increased technology, 
facility, IS development costs and a one-time charge of GBP14 million for restructuring 
costs following an efficiency and effectiveness review of the business.

Betting costs increased by GBP61 million to GBP236 million in line with the strong 
growth in SkyBet revenues.

Operating profit before goodwill and exceptional items increased by 34% on the 
comparable period to GBP805 million. Operating profit margin before goodwill and 
exceptional items increased from 16% to 20%, despite the small dilutive effect of 
the structurally lower margin SkyBet business, which currently generates a margin 
of around 10%.

Goodwill

The goodwill associated with planetfootball.com was fully written off in June 2004 
resulting in a GBP3 million reduction in goodwill on the comparable period to 
GBP116 million.

Exceptional items

During the second quarter, the Group sold its 49.5% investment in GSB to ITV for 
GBP14 million cash consideration. After deducting the carrying value of the 
investment in GSB and writing back the original goodwill relating to the 
increase of the Group's interest in GSB to 49.5% in March 1998, which had 
previously been eliminated against reserves, the disposal generated an 
accounting loss under UK Generally Accepted Accounting Principles ("UK GAAP") 
of GBP23 million.

In the quarter, the Group received GBP13 million from the liquidators of ITV 
Digital as a full and final settlement in respect of amounts owed to the Group. 
These amounts had been fully provided for in the year ended 30 June 2002 therefore 
generating a non-recurring operating exceptional item.

Joint Ventures

The Group's share of net operating profits from its joint ventures was GBP14 million 
for the year, compared to a GBP5 million net operating loss for the comparable period. 
After adjusting for a one-off GBP11 million write down in relation to Attheraces ("ATR") 
in the final quarter of last financial year, this represents an increase in net operating 
profits of GBP8 million, generated primarily from ATR.

Interest

Total net interest payable for the year reduced by GBP19 million to GBP62 million 
primarily as a result of an increase in interest receivable due to higher levels of 
cash on deposit at higher interest rates.

Taxation

The total net tax charge for the period of GBP206 million includes a current tax charge 
of GBP159 million, a deferred tax charge of GBP68 million and a tax charge in relation 
to exceptional items of GBP4 million, offset by a GBP25 million adjustment in respect of 
prior years. Excluding the effect of goodwill, joint ventures and exceptional items, the 
Group's underlying effective tax rate on ordinary activities for the year was 30%.

The net GBP25 million adjustment in respect of prior years comprises a GBP7 million 
benefit in respect of consortium relief on losses purchased from ATR and the favourable 
settlement of some prior year items.

The mainstream corporation tax liability for the year was GBP161 million and in 
accordance with the quarterly instalment regime, GBP75 million was paid in the year and 
GBP40 million was paid in July 2005. The final payment is due in October 2005.

Earnings

Profit after tax for the year was GBP425 million, generating earnings per share before 
goodwill and exceptional items of 29.0 pence, an increase of 58% on the comparable 
period. At 30 June 2005, the total number of shares outstanding was 1,867,523,599.

Cash flow

Earnings before interest, tax, depreciation and amortisation ("EBITDA") before 
exceptional items increased by 28% on the comparable period to GBP897 million. 
After a GBP55 million positive movement in working capital, a GBP13 million 
receipt from the liquidators of ITV digital and other items, the Group generated 
an operating cash inflow of GBP978 million. After taxation of GBP103 million and 
net interest payable of GBP63 million the Group utilised cash in a number of areas, 
including the share buy-back programme (GBP416 million, including GBP3 million of
stamp duty and commissions), capital expenditure (GBP230 million) and dividend 
payments (GBP138 million) resulting in a reduction in net debt during the year from 
GBP429 million to GBP379 million at 30 June 2005.

During the year, the Group progressed a number of capital expenditure and
infrastructure projects in line with the plans announced on 4 August 2004. The Group 
spent GBP75 million on a combination of infrastructure projects including the 
acquisition of four freehold properties previously leased at its Osterley campus 
and the construction of the Sky News centre. The Group continued work on the CRM 
programme to upgrade its customer service systems, investing GBP59 million during 
the year, with roll-out scheduled to commence in the second half of this calendar 
year. As part of the Group's business continuity plan, GBP24 million was
invested to build and fit out the Advanced Technology Centre. The remaining GBP72 
million, regarded as 'core' capital expenditure, was spent on IS infrastructure, 
broadcast equipment and new product development, including HDTV.

IFRS

The Group is required to adopt International Financial Reporting Standards
("IFRS") in the preparation of its consolidated financial statements from 1 
July 2005. In November 2005, the Group will report its first results under 
IFRS for the quarter ending 30 September 2005. In order to provide comparative 
figures under IFRS in advance, the Group will publish detailed information 
regarding the transition on 14 September 2005. This will include audited 
reconciliations of the 2005 Income Statement, Balance Sheet and Cash Flow to 
UK GAAP from IFRS detailing the impact of the Group's new accounting policies, 
and unaudited quarterly 2005 Income Statements to provide comparatives for 2006.

Further details on the transition to IFRS, including unaudited headline results 
for the 2005 financial year, will be provided at the Group's preliminary results 
presentation today.

Distributions to shareholders

The Board of Directors are proposing a final dividend of 5 pence per ordinary 
share, resulting in a total dividend for the year of 9 pence per share. The 
ex-dividend date will be 26 October 2005 and, subject to shareholder approval 
at the Company's Annual General Meeting ("AGM"), the dividend will be paid on 
18 November 2005 to shareholders of record on 28 October 2005.

At the Company's AGM on 12 November 2004, the Company received approval from 
shareholders to repurchase up to 97 million shares, representing approximately 
five percent of its issued share capital.  During the year, the Company 
repurchased for cancellation 74.3 million shares for a total consideration of 
GBP416 million, including stamp duty and commissions. The programme is ongoing, 
and will continue until the authority granted on 12 November 2004 expires at the 
next AGM on 4 November 2005.

It remains the overall financial policy of the Board to achieve an appropriate 
balance between distributions arising from strong free cash flow generation to 
shareholders, and maintaining a prudent degree of strategic and financial 
flexibility.

The Board considers that an on-market share repurchase programme is a flexible, 
equitable and tax-efficient means by which to make distributions to shareholders 
which are incremental to the ordinary dividend. As a result, the Board currently 
intends to propose resolutions at the AGM in November 2005 to renew the annual 
authority last granted by shareholders in 2004 to buy back up to a further 5% 
of its issued share capital.

In pursuing a continued buy-back authority, the Board is sensitive to the
concerns expressed by some Independent Shareholders. Accordingly, as part of the 
buy-back proposals, the Board intends to enter into an agreement with News UK 
Nominees Limited, which would limit the exercise of its voting rights to the 
level held at the time of the 2005 AGM (expected to be no more than 37.2%). 
This voting arrangement will be conditional on the buy-back proposals being 
approved by shareholders. Further details of the proposals will be sent to 
shareholders in advance of the AGM.

Use of non-GAAP financial information

This results announcement contains certain information on the Group's results and 
cash flows that have been derived from amounts calculated in accordance with UK 
Generally Accepted Accounting Principles ("UK GAAP"), but are not themselves UK 
GAAP measures. These should not be viewed in isolation as alternatives to the 
equivalent UK GAAP measure and should be read in conjunction with the equivalent 
UK GAAP measures. Further disclosures are also provided under "Use of Non-GAAP 
Financial Information" in Appendix 2.

Forward-looking statements

This document contains certain forward-looking statements within the meaning 
of the United States Private Securities Litigation Reform Act of 1995 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 
projections with regard to the potential for growth of free-to-air and pay-TV, 
advertising growth, DTH subscriber growth and Multiroom and Sky+ penetration, DTH 
revenue, profitability and margin growth, cash flow generation, subscriber
acquisition costs and marketing expenditure, capital expenditure programmes and 
proposals for returning capital to shareholders.

These statements (and all other forward-looking statements contained in this document) 
are not guarantees of future performance and are subject to risks, uncertainties and 
other factors, some of which are beyond the Group's 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. These factors include, but are not limited to, 
the fact that the Group operates in a highly competitive environment, the effects of 
government regulation upon the Group's activities, its reliance on technology, which is
subject to risk, change and development, its ability to continue to obtain exclusive rights 
to movies, sports events and other programming content, risks inherent in the implementation
of large-scale capital expenditure projects, the Group's ability to continue to 
communicate and market its services effectively, and the risks associated with the 
Group's operation of digital television transmission in the UK and Ireland.

Information on some risks and uncertainties are described in the "Risk Factors" section 
of Sky's Interim Report on Form 6-K for the period ended 31 December 2004. Copies of the 
Interim Report on Form 6-K are available on request from British Sky Broadcasting Group plc, 
Grant Way, Isleworth TW7 5QD or from the British Sky Broadcasting web page at 
www.sky.com/corporate. 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 otherwise.


Appendix 1

Subscribers to Sky Channels

                                    As at            As at
                                 30/06/04         30/06/05

DTH homes1,2 3                  7,355,000        7,787,000

Total TV homes in the UK and   26,066,000       26,321,000
Ireland4

DTH homes as a percentage of
total UK and
Ireland TV homes                       28%              30%

Cable - UK                      3,321,000        3,287,000
Cable - Ireland                   574,000          585,000
Total Sky pay homes            11,250,000       11,659,000
Total Sky pay homes as a
percentage of total                    43%              44%
UK and Ireland TV homes

Sky+ homes                        397,000          888,000

Multiroom homes5                  293,000          645,000

DTT - UK 6                      3,084,000        4,940,000

1: Includes DTH subscribers in Republic of Ireland 
   (363,000, as at 30 June 2005).
2: DTH subscribers includes only primary subscriptions 
   to Sky (no additional units are counted for Sky+ or 
   Multiroom subscriptions). This does not include 
   customers taking Sky's freesat offering or churned 
   customers viewing free-to-air channels.
3: DTH homes include subscribers taking Sky packages 
   through Kingston Interactive Television and Homechoice.
4: Total UK homes estimated by BARB and taken from the 
   beginning of the month following the period end 
   (latest figures as at 1 July 2005). Total Ireland homes 
   estimated by Nielsen Media Research, conducted on an 
   annual basis in July with results available in September 
   (latest figures as at July 2004).
5: Multiroom includes households subscribing to more than 
   one digibox. (No additional units are counted for the 
   second or any subsequent Multiroom subscriptions.)
6: DTT homes estimated by BARB and taken from the beginning 
   of the following month (latest figures as at 1 July 2005). 
   These include Sky or Cable homes that already take 
   multi-channel TV.

Appendix 2

Use of Non-GAAP Financial Information

A summary of certain non-GAAP measures included in this results
announcement, together with the most comparable GAAP measure and
descriptions of certain non-GAAP measures, is shown below.

Non-GAAP measure            Most comparable GAAP measure

Operating profit before     Operating profit
goodwill

Profit before taxation,     Profit before taxation
goodwill and exceptional
items

Profit after taxation       Profit after taxation
before goodwill and
exceptional items

Earnings per share before   Earnings per share
goodwill and exceptional
items

EBITDA                      Operating profit



Glossary

Useful definitions          Description

ARPU                        Average Revenue Per User: the amount
                            spent by the Group's residential
                            subscribers in the quarter, divided by
                            the average number of residential
                            subscribers in the quarter,
                            annualised.

Churn                       The rate at which subscribers
                            relinquish their subscriptions,
                            expressed as a percentage of total
                            subscribers.

Digibox                     Digital satellite reception equipment.

EBITDA                      Earnings before interest, taxation,
                            depreciation and amortisation is
                            calculated as operating profit before
                            depreciation and amortisation or
                            impairment of goodwill and intangible
                            assets.

Effective tax rate          Corporation tax charge expressed as a
                            percentage of Profit before Tax,
                            goodwill, interest, exceptional items
                            and share of results of joint
                            ventures.

Mainstream Corporation Tax  Current corporation tax charge for the
liability                   year.

Multichannel viewing share  Share of viewers of non-analogue
                            terrestrial television.

Multiroom                   Installation of one or more additional
                            digiboxes in the household of an
                            existing DTH subscriber.

PVR                         Personal Video Recorder: Digital TV
                            receiver which utilises a built in
                            hard disk drive to enable viewers to
                            record without videotapes, pause live
                            TV, and record one programme while
                            watching another.

Sky +                       Sky's fully-integrated Personal Video
                            Recorder (PVR) and satellite decoder.

Viewing share               Number of people viewing a channel as
                            a percentage of total viewing
                            audience.



Consolidated Profit and Loss Account for the year ended 30 June 2005

                           Notes      Before    Goodwill      2005
                                    goodwill         and     Total
                                         and exceptional      GBPm
                                 exceptional       items  (audited)
                                       items        GBPm
                                        GBPm    (audited)
                                    (audited)

Turnover:
Group and
share of joint
ventures'
turnover                               4,115           -     4,115
Less: share of
joint
ventures'
turnover                                 (67)          -       (67)
Group turnover                 1       4,048           -     4,048
__________________________________________________________________
Operating
expenses, net                2,4      (3,243)       (103)   (3,346)
__________________________________________________________________
EBITDA                                   897          13       910
Depreciation                             (92)          -       (92)
Amortisation                               -        (116)     (116)
__________________________________________________________________
Operating
profit                                   805        (103)      702
__________________________________________________________________
Share of joint
ventures' and
associates'
operating
results                        3          14           -        14
Loss on
disposal of
investments in
joint ventures                 4           -         (23)      (23)
Profit on
disposal of
fixed asset
investments                    4           -           -         -
Amounts
written back
to fixed asset
investments,
net                            4           -           -         -
Profit on
ordinary
activities
before
interest and
taxation                                 819        (126)      693
__________________________________________________________________
Interest
receivable and
similar income                 5          30           -        30
Interest
payable and
similar
charges                        5         (92)          -       (92)
Profit on
ordinary
activities
before
taxation                                 757        (126)      631
__________________________________________________________________
Tax charge on
profit on
ordinary
activities                     6        (202)         (4)     (206)
Profit on
ordinary
activities
after taxation                           555        (130)      425
__________________________________________________________________
Equity
dividends                      7                              (170)
Retained
profit for the
financial year                                                 255
__________________________________________________________________
Earnings per
share - basic                  8        29.0p       (6.8p)    22.2p
Earnings per
share -
diluted                        8        29.0p       (6.8p)    22.2p
__________________________________________________________________

                           Notes      Before    Goodwill      2004
                                   gooll and         and     Total
                                 exceptional exceptional      GBPm
                                       items       items  (audited)
                                        GBPm        GBPm
                                    (audited)   (audited)

Turnover:
Group and
share of joint
ventures'
turnover                               3,738           -     3,738
Less: share of
joint
ventures'
turnover                                 (82)          -       (82)
Group turnover                 1       3,656           -     3,656
__________________________________________________________________
Operating
expenses, net                2,4      (3,056)       (119)   (3,175)
__________________________________________________________________
EBITDA                                   702           -       702
Depreciation                            (102)          -      (102)
Amortisation                               -        (119)     (119)
__________________________________________________________________
Operating
profit                                   600        (119)      481
__________________________________________________________________
Share of joint
ventures' and
associates'
operating
results                        3          (5)         10         5
Loss on
disposal of
investments in
joint ventures                 4           -           -         -
Profit on
disposal of
fixed asset
investments                    4           -          51        51
Amounts
written back
to fixed asset
investments,
net                            4           -          24        24
Profit on
ordinary
activities
before
interest and
taxation                                 595         (34)      561
__________________________________________________________________
Interest
receivable and
similar income                 5          10           -        10
Interest
payable and
similar
charges                        5         (91)          -       (91)
Profit on
ordinary
activities
before
taxation                                 514         (34)      480
__________________________________________________________________
Tax charge on
profit on
ordinary
activities                     6        (158)          -      (158)
Profit on
ordinary
activities
after taxation                           356         (34)      322
__________________________________________________________________
Equity
dividends                      7                              (116)
Retained
profit for the
financial year                                                 206
__________________________________________________________________
Earnings per
share - basic                  8        18.3p       (1.7p)    16.6p
Earnings per
share -
diluted                        8        18.3p       (1.7p)    16.6p
__________________________________________________________________

There were no recognised gains or losses in either year other than those
included within the profit and loss account.

Details of movements on reserves are shown in note 16.

The accompanying notes are an integral part of this consolidated profit and loss
account.

All results relate to continuing operations.

Consolidated Profit and Loss Account for the three months ended 30 June 2005

                                 Before    Goodwill         Three
                               goodwill         and        months
                                    and exceptional      ended 30
                            exceptional       items          June
                                  items        GBPm          2005
                                   GBPm  (unaudited)        Total
                             (unaudited)                     GBPm
                                                       (unaudited)

Group and
share of joint
ventures'
turnover                         1,103            -         1,103
Less: share of
joint
ventures'
turnover                           (15)           -           (15)
Group turnover                   1,088            -         1,088
_________________________________________________________________
Operating
expenses, net                     (857)         (18)         (875)
_________________________________________________________________
EBITDA                             253           13           266
Depreciation                       (22)           -           (22)
Amortisation                         -          (31)          (31)
_________________________________________________________________
Operating
profit                             231          (18)          213
_________________________________________________________________
Share of joint
ventures' and
associates'
operating
results                              2            -             2
Profit on
ordinary
activities
before
interest and
taxation                           233          (18)          215
_________________________________________________________________
Interest
receivable and
similar income                       8            -             8
Interest
payable and
similar
charges                            (23)           -           (23)
Profit on
ordinary
activities
before
taxation                           218          (18)          200
_________________________________________________________________
Tax charge on
profit on
ordinary
activities                         (44)          (4)          (48)
Profit on
ordinary
activities
after taxation                     174          (22)          152
_________________________________________________________________
Equity
dividends                                                     (93)
Retained
profit for the
period                                                         59
_________________________________________________________________
Earnings per
share - basic                      9.2p        (1.2p)         8.0p
Earnings per
share -
diluted                            9.2p        (1.2p)         8.0p
_________________________________________________________________


                                 Before    Goodwill         Three
                               goodwill         and        months
                                    and exceptional      ended 30
                            exceptional       items          June
                                  items        GBPm          2004
                                   GBPm  (unaudited)        Total
                             (unaudited)                     GBPm
                                                       (unaudited)

Group and
share of joint
ventures'
turnover                            979           -           979
Less: share of
joint
ventures'
turnover                            (20)          -           (20)
Group turnover                      959           -           959
_________________________________________________________________
Operating
expenses, net                      (797)        (32)         (829)
_________________________________________________________________
EBITDA                              184           -           184
Depreciation                        (22)          -           (22)
Amortisation                          -         (32)          (32)
_________________________________________________________________
Operating
profit                              162         (32)          130
_________________________________________________________________
Share of joint
ventures' and
associates'
operating
results                              (1)         10             9
Profit on
ordinary
activities
before
interest and
taxation                            161         (22)          139
_________________________________________________________________
Interest
receivable and
similar income                        5           -             5
Interest
payable and
similar
charges                             (23)          -           (23)
Profit on
ordinary
activities
before
taxation                            143         (22)          121
_________________________________________________________________
Tax charge on
profit on
ordinary
activities                          (42)          -           (42)
Profit on
ordinary
activities
after taxation                      101         (22)           79
_________________________________________________________________
Equity
dividends                                                     (63)
Retained
profit for the
period                                                         16
_________________________________________________________________
Earnings per
share - basic                       5.2p       (1.1p)         4.1p
Earnings per
share -
diluted                             5.2p       (1.1p)         4.1p
_________________________________________________________________

Consolidated Balance Sheet at 30 June 2005

                               Notes            2005            2004
                                                GBPm            GBPm
                                            (audited)       (audited)

Fixed assets
Intangible fixed assets            9             301             417
Tangible fixed assets             10             526             376
Investments:
Investments in
associates                               1               1
Investments in
joint          : Share of               47              72
ventures         gross assets
               : Share of              (26)            (45)
                 gross
                 liabilities
               : Transfer to             1               5
                 creditors
Total investments in
joint ventures and
associates                                        23              33
____________________________________________________________________
Other fixed asset
investments                                        2               2
Total investments                                 25              35
____________________________________________________________________
                                                 852             828
____________________________________________________________________
Current assets
Stocks                            11             340             375
Debtors: Amounts falling due
within one year
- deferred tax asset              12              43              49
- other                           12             299             321
                                                 342             370
____________________________________________________________________
Debtors: Amounts falling due
after more than one year
- deferred tax asset              12              57             102
- other                           12              32              42
                                                  89             144
____________________________________________________________________
Cash and liquid resources:
- current asset
  investments                                     54             173
- cash at bank and in
  hand                                           643             474
                                                 697             647
____________________________________________________________________
                                               1,468           1,536
____________________________________________________________________
Creditors: Amounts
falling due within one
year                              13          (1,240)         (1,170)

Net current assets                               228             366
____________________________________________________________________
Total assets less
current liabilities                            1,080           1,194
____________________________________________________________________
Creditors: Amounts falling due
after more than one year
- long-term borrowings            14          (1,076)         (1,076)
- accruals and deferred
  income                          14             (25)            (28)
                                              (1,101)         (1,104)
____________________________________________________________________
Provisions for
liabilities and charges           15             (13)              -
                                                 (34)             90
____________________________________________________________________
Capital and reserves -
equity
Called-up share capital           16             934             971
Share premium                     16           1,437           1,437
Employee Share Ownership
Plan ("ESOP") reserve             16             (32)            (30)
Merger reserve                    16             149             222
Special reserve                   16              14              14
Capital redemption
reserve                           16              37               -
Profit and loss account           16          (2,573)         (2,524)
                                                 (34)             90
____________________________________________________________________

The accompanying notes are an integral part of this consolidated balance sheet.

Consolidated Cash Flow Statement for the year ended 30 June 2005

                                        Notes      2005      2004
                                                   GBPm      GBPm
                                               (audited) (audited)

Net cash inflow from operating
activities                              17a         978       882
_________________________________________________________________
Dividends received from joint
ventures                                             12         4
_________________________________________________________________
Returns on investments and servicing of
finance
Interest received and similar
income                                               28         7
Interest paid and similar charges                   (91)      (89)
Net cash outflow from returns on
investments and servicing of
finance                                             (63)      (82)
_________________________________________________________________
Taxation
UK corporation tax paid                            (101)      (55)
Consortium relief paid                               (2)       (3)
Net cash outflow from taxation                     (103)      (58)
_________________________________________________________________
Capital expenditure and financial
investment
Payments to acquire tangible fixed
assets                                             (230)     (132)
Receipts from sales of fixed asset
investments                                           1       116
Net cash outflow from capital
expenditure and financial
investment                                         (229)      (16)
_________________________________________________________________
Acquisitions and disposals
Funding to joint ventures and
associates                                           (4)       (5)
Repayments of funding from joint
ventures and associates                               8         6
Receipts from sales of investments
in joint ventures                                    14         -
Net cash inflow from acquisitions
and disposals                                        18         1
_________________________________________________________________
Equity dividends paid                              (138)      (53)
_________________________________________________________________
Net cash inflow before management
of liquid resources and financing                   475       678
_________________________________________________________________
Management of liquid resources          17c         164      (511)
_________________________________________________________________
Financing
Proceeds from issue of Ordinary
Shares                                                -        20
Proceeds from issue of shares held
in ESOP                                               4         -
Purchase of own shares for ESOP                     (14)      (22)
Share buy-back                                     (416)        -
Capital element of finance lease
payments                                17b           -        (1)
Net decrease in debt due after
more than one year                      17b           -       (75)
Net cash outflow from financing                    (426)      (78)
_________________________________________________________________
Increase in cash                        17c         213        89
_________________________________________________________________

The accompanying notes are an integral part of this consolidated cash flow
statement.


1. Turnover

                                                   2005        2004
                                                   GBPm        GBPm
                                              (audited)   (audited)

Direct-to-home subscribers                        2,968       2,660
Cable subscribers                                   219         215
Advertising                                         329         312
Sky Bet                                             261         191
Sky Active                                           92         116
Other                                               179         162
                                                  4,048       3,656
___________________________________________________________________


2. Operating expenses, net

                             Before       Good-        2005
                           goodwill        will       Total
                                and         and        GBPm
                             excep-      excep-   (audited)
                             tional      tional
                              items       items
                               GBPm        GBPm
                          (audited)   (audited)

Programming (i)               1,636           -       1,636
Transmission and                171           -         171
related functions (i)
Marketing                       515           -         515
Subscriber management           396           -         396
Administration (ii)             289         103         392
Betting                         236           -         236
                              3,243         103       3,346
___________________________________________________________________


                             Before       Good-        2004
                              good-        will       Total
                               will         and        GBPm
                                and      excep-   (audited)
                             excep-      tional
                             tional       items
                              items        GBPm
                               GBPm   (audited)
                          (audited)

Programming (i)               1,711           -       1,711
Transmission and                146           -         146
related functions (i)
Marketing                       396           -         396
Subscriber management           371           -         371
Administration (ii)             257         119         376
Betting                         175           -         175
                              3,056         119       3,175
___________________________________________________________________


(i)  The amounts shown are net of GBP11 million (2004: 
     GBP11 million) receivable from the disposal of programming 
     rights not acquired for use by the Group, and GBP28
     million (2004: GBP28 million) in respect of the provision 
     to third party broadcasters of spare transponder capacity.

(ii) Administration costs include a goodwill amortisation charge 
     of GBP116 million (2004: GBP119 million), net of an 
     exceptional credit of GBP13 million (2004: nil) 
     (see note 4).

3. Share of joint ventures' and associates' operating results

Goodwill

In the prior year, a credit of GBP11 million arose on the write back of negative
goodwill which had arisen on the acquisition of an additional 16.7% stake in
Attheraces Holdings Limited in April 2004, taking the Group's stake in
Attheraces to 50%. The remaining net GBP1 million charge relates to amortisation
of goodwill arising on the acquisition of certain joint ventures and associates.



4. Exceptional items

                         Credit      Taxation          2005
                       (charge)      (charge)         Total
                         before        credit          GBPm
                       taxation          GBPm     (audited)
                           GBPm     (audited)
                      (audited)

Settlement of ITV            13            (4)            9
Digital
programming
debtors (i)
Exceptional                  13            (4)            9
operating items
___________________________________________________________________

Loss on disposal            (23)            -           (23)
of investment in
joint ventures(ii)
Profit on                     -             -             -
disposal of fixed
asset investments(iii)
Amounts written               -             -             -
back to fixed
asset
investments, net(iv)
Exceptional                 (23)            -           (23)
non-operating
items

Total exceptional           (10)           (4)          (14)
items
___________________________________________________________________


                  Credit before      Taxation          2004
                       taxation      (charge)         Total
                           GBPm        credit          GBPm
                      (audited)          GBPm     (audited)
                                    (audited)

Settlement of ITV             -             -             -
Digital
programming
debtors (i)
Exceptional                   -             -             -
operating items
___________________________________________________________________

Loss on disposal              -             -             -
of investment in
joint ventures(ii)
Profit on                    51             -            51
disposal of fixed
asset investments(iii)
Amounts written              24             -            24
back to fixed
asset
investments, net(iv)
Exceptional                  75             -            75
non-operating
items

Total exceptional            75             -            75
items
___________________________________________________________________


2005

(i) Settlement of ITV Digital programming debtors

In July 2005, the Group received GBP13 million from the liquidators of ITV
Digital as a full and final settlement in respect of amounts owed to the Group.

(ii) Loss on disposal of investments in joint ventures

In November 2004, the Group sold its 49.5% investment in Granada Sky
Broadcasting Limited ("GSB") for GBP14 million in cash, realising a loss on
disposal of GBP23 million. This included the write back of GBP32 million of
goodwill which had previously been written off to reserves, as permitted prior
to the implementation of Financial Reporting Standard ("FRS") 10, "Goodwill and
Intangible Assets" ("FRS 10").

2004

(iii) Profit on disposal of fixed asset investments

In March 2004, the Group sold its 20% shareholding in QVC (UK), operator of QVC
- The Shopping Channel, for GBP49 million in cash, realising a profit on
disposal of GBP49 million.

In October 2003, the Group disposed of its listed investment in Manchester
United plc, realising a profit on disposal of GBP2 million.

(iv) Amounts written back to fixed asset investments, net

The Group reduced its provision against its minority equity investments in
football clubs by GBP33 million, due to the disposal of its investment in
Manchester United plc in October 2003, for GBP62 million in cash. The Group also
increased its provision against its remaining minority equity investments in
football clubs by GBP9 million.


5. Interest

(a) Interest receivable and similar income

                                               2005         2004
                                               GBPm         GBPm
                                          (audited)    (audited)
Group
Interest receivable on cash and                  29            8
liquid resources
Other interest receivable and                     -            1
similar income
                                                 29            9
___________________________________________________________________

Joint ventures and associates
Share of joint ventures' and                      1            1
associates' interest receivable
___________________________________________________________________

Total interest receivable and                    30           10
similar income
___________________________________________________________________

(b) Interest payable and similar charges

                                                   2005       2004
                                                   GBPm       GBPm
                                              (audited)  (audited)
Group
On bank loans, overdrafts and other loans
repayable within five years, not by
instalments:
- GBP1 billion revolving credit facility              2          -
  ("RCF") (i)
- GBP600 million RCF (i)                              4          6
- GBP200 million RCF (ii)                             -          2
US$650 million of 8.200% Guaranteed Notes,           33         30
repayable in 2009
GBP100 million of 7.750% Guaranteed Notes,            8          8
repayable in 2009
US$600 million of 6.875% Guaranteed Notes,           30         30
repayable in 2009
US$300 million of 7.300% Guaranteed Notes,           14         14
repayable in 2006
Finance lease interest                                1          -
                                                     92         90
___________________________________________________________________

Joint ventures and associates
Share of joint ventures' and associates'              -          1
interest payable
___________________________________________________________________

Total interest payable and similar charges           92         91
___________________________________________________________________

(i) In November 2004, the Group entered into a GBP1 billion RCF. This facility
was used to cancel an existing GBP600 million RCF, and is available for general
corporate purposes, but was undrawn at 30 June 2005. The GBP1 billion RCF has a
maturity date of July 2010. The GBP2 million charge for the year (2004: nil)
represents the commitment fee to 30 June 2005.

(ii) The GBP200 million RCF expired without being renewed on 29 June 2004.

6. Taxation

                                Tax      Excep-        2005
                             charge      tional       Total
                           (credit)         tax        GBPm
                                 on      charge   (audited)
                             profit        GBPm
                             before   (audited)
                             excep-
                             tional
                              items
                               GBPm
                          (audited)

Current tax
UK corporation tax              159           4         163
Adjustment in respect           (8)           -         (8)
of prior years
Total current tax               151           4         155
charge
___________________________________________________________________
Deferred tax
Origination and                  68           -          68
reversal of timing
differences
(Decrease) increase in          (17)          -         (17)
estimate of recoverable
deferred tax asset in
respect of prior years
Total deferred tax               51           -          51
charge
___________________________________________________________________
Share of joint                    -           -           -
ventures' and
associates' tax charge
___________________________________________________________________
                                202           4         206
___________________________________________________________________


                                Tax      Excep-        2004
                             charge      tional       Total
                           (credit)         tax        GBPm
                                 on      charge   (audited)
                             profit        GBPm
                             before   (audited)
                            except-
                              ional
                              items
                               GBPm
                          (audited)

Current tax
UK corporation tax              127           -         127
Adjustment in respect            (8)          -          (8)
of prior years
Total current tax               119           -         119
charge
___________________________________________________________________
Deferred tax
Origination and                  34           -          34
reversal of timing
differences
(Decrease) increase in            5           -           5
estimate of recoverable
deferred tax asset in
respect of prior years
Total deferred tax               39           -          39
charge
___________________________________________________________________
Share of joint                    -           -           -
ventures' and
associates' tax charge
___________________________________________________________________
                                158           -         158
___________________________________________________________________

All taxation relates to UK corporation tax.

7. Equity dividends

                                                   2005      2004
                                              (audited) (audited)
                                                   GBPm      GBPm

Interim dividend paid of 4.00p (2004: 2.75p)         77        53
per Ordinary Share
Final dividend proposed of 5.00p (2004:              93        63
3.25p) per Ordinary Share
                                                    170       116
___________________________________________________________________

The ESOP has waived its rights to dividends.

8. Earnings per share

                    Before      Good-     Excep-       2005
                     good-       will     tional      After
                      will  (audited)      items      good-
                       and             (audited)       will
                    excep-                              and
                    tional                           excep-
                     items                           tional
                 (audited)                            items
                                                  (audited)
Profit on          GBP555m  (GBP116m)   (GBP14m)    GBP425m
ordinary
activities
after taxation
Earnings per         29.0p     (6.1p)     (0.7p)      22.2p
share - basic
Earnings per         29.0p     (6.1p)     (0.7p)      22.2p
share - diluted
___________________________________________________________________


                    Before      Good-     Excep-        2004
                     good-       will     tional       After
                      will  (audited)      items       good-
                       and             (audited)        will
                    excep-                        and excep-
                    tional                            tional
                     items                             items
                 (audited)                         (audited)
Profit on          GBP356m  (GBP109m)     GBP75m     GBP322m
ordinary
activities
after taxation
Earnings per         18.3p     (5.6p)       3.9p       16.6p
share - basic
Earnings per         18.3p     (5.6p)       3.9p       16.6p
share - diluted
___________________________________________________________________

Earnings per share is shown calculated by reference to profits both before and
after goodwill and exceptional items and related tax, since the Directors
consider that this gives a useful additional indication of underlying
performance.

9. Intangible fixed assets

The movement in the year was as follows:
                                                           Goodwill
                                                               GBPm
                                                          (audited)

Net book value at 1 July 2004                                   417
Additions                                                         -
Amortisation charge                                            (116)
Net book value at 30 June 2005                                  301
___________________________________________________________________

Goodwill of GBP272 million, GBP543 million and GBP5 million, arising on the
acquisitions of Sports Internet Group ("SIG"), British Interactive Broadcasting
("BiB") and WAPTV respectively, is being amortised over periods of seven years
on a straight-line basis.

In accordance with FRS 11 "Impairment of fixed assets and goodwill", impairment
reviews were performed on the carrying values of BiB and SIG goodwill balances
at the end of the first full financial year after acquisition, at 30 June 2002,
which did not indicate impairment. Consistent with Group strategy, the business
plans on which these reviews were based reflect significant projected increases
in betting and other interactive revenues over the subsequent five years. The
Group continues to monitor the performance of these businesses and is satisfied
that no impairment of goodwill has occurred.

10. Tangible fixed assets

The movement in the year was as follows:

                        Free-     Short    Equip-    Assets     Total
                         hold    lease-     ment,        in      GBPm
                         land      hold      fix-    course (audited)
                          and  improve-     tures        of
                       build-     ments       and      con-
                         ings      GBPm      fit-    struc-
                         GBPm (audited)     tings      tion
                    (audited)                GBPm      GBPm
                                        (audited) (audited)

Net book value as          34        24       217       101       376
at 1 July 2004
Additions                  25         -        66       153       244
Disposals                   -         -        (2)        -        (2)
Transfers                   -        (8)        8         -         -
Depreciation               (2)       (5)      (85)        -       (92)
Net book value as          57        11       204       254       526
at 30 June 2005
___________________________________________________________________

11. Stocks

                                                     2005      2004
                                                     GBPm      GBPm
                                                (audited) (audited)

Television programme rights                           310       322
Digiboxes and related equipment                        28        49
Raw materials and consumables                           2         2
Other goods held for resale                             -         2
                                                      340       375
___________________________________________________________________

At least 86% (2004: 87%) of the existing television programme rights at 30 June
2005 will be amortised within one year.

12. Debtors

                                                    2005       2004
                                                    GBPm       GBPm
                                               (audited)  (audited)
Amounts falling due within one year
Trade debtors                                        134        165
Amounts owed by joint ventures and associates          6          8
Amounts owed by other related parties                  1          2
Other debtors                                          4          3
Prepaid programme rights                              47         35
Prepaid transponder rentals                           15         15
Deferred tax asset                                    43         49
Other prepayments and accrued income                  92         93
                                                     342        370
___________________________________________________________________

Amounts falling due after more than one year
Prepaid programme rights                               4          6
Prepaid transponder rentals                           23         30
Deferred tax asset                                    57        102
Other prepayments and accrued income                   5          6
                                                      89        144
___________________________________________________________________

13. Creditors: Amounts falling due within one year

                                                    2005       2004
                                                    GBPm       GBPm
                                               (audited)  (audited)

Trade creditors (i)                                  345        390
Amounts due to joint ventures and                      3          8
associates
Amounts due to related parties                        34         40
UK corporation tax                                   100         48
VAT                                                  101         92
Social security and PAYE                              10          8
Proposed dividend                                     93         63
Defined contribution pension scheme                    1          1
creditor
Other creditors                                       42         60
Accruals and deferred income                         511        460
                                                   1,240      1,170
___________________________________________________________________

(i) Included within trade creditors are GBP187 million (2004: GBP250 million) of
US dollar-denominated programme creditors. Approximately 80% (2004: 80%) of
these were covered by forward rate currency contracts.

14. Creditors: Amounts falling due after more than one year

                                                     2005      2004
                                                     GBPm      GBPm
                                                (audited) (audited)
Long-term borrowings
US$650 million of 8.200% Guaranteed                   413       413
Notes, repayable in 2009
GBP100 million of 7.750% Guaranteed                   100       100
Notes, repayable in 2009
US$600 million of 6.875% Guaranteed                   367       367
Notes, repayable in 2009
US$300 million of 7.300% Guaranteed                   189       189
Notes, repayable in 2006
Obligations under finance leases                        7         7
                                                    1,076     1,076
___________________________________________________________________

Other
Accruals and deferred income                           25        28
___________________________________________________________________
                                                    1,101     1,104
___________________________________________________________________

Undrawn RCFs
In November 2004, the Group entered into a GBP1 billion RCF. This facility was
used to cancel an existing GBP600 million RCF and is available for general
corporate purposes. The GBP1 billion facility has a maturity date of July 2010,
and interest accrues at a margin of between 0.45% and 0.55% above LIBOR,
dependent on the Group's leverage ratio of net debt to earnings before interest,
taxes, depreciation and amortisation ("EBITDA") (as defined in the loan
agreement). At the current ratio of Net Debt: EBITDA, the margin would be 0.45%
above LIBOR if the Group were to make a drawing on the facility.

Both the bank facilities and the publicly-traded guaranteed notes have been
issued by the Company and guaranteed by both British Sky Broadcasting Limited
and Sky Subscribers Services Limited. Additionally, the GBP1 billion RCF has
been guaranteed by BSkyB Investments Limited.

15. Provisions for liabilities and charges

                                   Provision       Other      Total
                                         for      provi-     provi-
                                      redun-       sions      sions
                                       dancy        GBPm       GBPm
                                    expenses   (audited)   (audited
                                        GBPm
                                   (audited)

At 1 July 2004                             -           -          -
Provided in the year                      11           2         13
At 30 June 2005                           11           2         13
___________________________________________________________________

16. Reconciliation of movement in shareholders' funds

Movement in shareholders' funds includes all movements in reserves.

                           Share        Share         ESOP
                         capital      premium      reserve
                            GBPm         GBPm         GBPm
                       (audited)    (audited)    (audited)

At 1 July 2004               971        1,437          (30)
___________________________________________________________________
ESOP shares                    -            -           12
utilised
ESOP shares                    -            -          (14)
purchased
Profit for the                 -            -            -
financial year
Dividends                      -            -            -
Transfer from                  -            -            -
merger reserve
Write back of                  -            -            -
goodwill on
disposal
Share buy-back               (37)           -            -
___________________________________________________________________
At 30 June 2005              934        1,437          (32)
___________________________________________________________________


                    Merger   Special   Capital    Profit       Total
                   reserve   reserve   redemp-       and      equity
                      GBPm      GBPm      tion      loss      share-
                 (audited) (audited)   reserve   account    holders'
                                          GBPm      GBPm       funds
                                     (audited) (audited)   (deficit)
                                                                GBPm
                                                           (audited)

At 1 July 2004         222        14         -    (2,524)         90
___________________________________________________________________
ESOP shares              -         -         -         7          19
utilised
ESOP shares              -         -         -         -         (14)
purchased
Profit for the           -         -         -       425         425
financial year
Dividends                -         -         -      (170)       (170)
Transfer from         (73)         -         -        73           -
merger reserve
Write back of            -         -         -        32          32
goodwill on
disposal
Share buy-back           -         -        37      (416)       (416)
___________________________________________________________________
At 30 June 2005        149        14        37    (2,573)        (34)
___________________________________________________________________


Share buy-back
On 12 November 2004, the Company's shareholders approved a resolution at the
Annual General Meeting for the Company to purchase up to 97 million Ordinary
Shares. During the financial year, the Company purchased, and subsequently
cancelled, 74 million Ordinary Shares at an average price of GBP5.60 per share,
with a nominal value of GBP37 million, for a consideration of GBP416 million.
Consideration included stamp duty and commission of GBP3 million. This
represents 4% of called-up share capital at the beginning of the financial year.

Goodwill
In accordance with FRS 10, the Company has included the write off of GBP32
million of unamortised goodwill in the calculation of the loss on disposal of
GSB, the effect of which has been included in the profit for the financial year.
The goodwill arose on the purchase of GSB and had previously been written off to
the profit and loss reserve as permitted prior to FRS 10. Accordingly, an
adjustment has been made to write back the GBP32 million charge to the profit
and loss reserve.

At 30 June 2005, the cumulative goodwill written off directly to reserves by the
Group amounted to GBP492 million (2004: GBP524 million).

Share option schemes
During the period, the Company issued shares with a market value of GBP1 million
(2004: GBP26 million) in respect of the exercise of options awarded under
various share option schemes.

At 30 June 2005, the Group's ESOP held 5,609,212 Ordinary Shares in the Company
at an average value of GBP5.78 per share. The 1,808,303 shares utilised during
the period relate to the exercise of Long Term Incentive Plan ("LTIP"), Equity
Bonus Plan ("EBP"), Key Contributor Plan ("KCP"), Executive Share Option Scheme
and Sharesave Scheme awards.

17. Notes to consolidated cash flow statement

(a) Reconciliation of operating profit to operating cash flows


                                 Before      Good-       2005
                                  good-       will      Total
                                   will        and       GBPm
                                    and     excep-  (audited)
                                 excep-     tional
                                 tional      items
                                  items       GBPm
                                   GBPm  (audited)
                              (audited)

Operating profit                    805       (103)       702
Depreciation                         92          -         92
Amortisation of goodwill and          -        116        116
other intangible fixed
assets
Loss on disposal of fixed             2          -          2
assets
Decrease (increase) in stock         35          -         35
Decrease in debtors                  34          -         34
(Decrease) increase in              (14)         -        (14)
creditors
Increase (decrease) in               12          -         12
provision
Foreign exchange movement            (1)         -         (1)
Net cash inflow from                965         13        978
operating activities
___________________________________________________________________


                                 Before      Good-       2004
                                  good-       will      Total
                                   will        and       GBPm
                                    and     excep-  (audited)
                                 excep-     tional
                                 tional      items
                                  items       GBPm
                                   GBPm  (audited)
                              (audited)

Operating profit                    600       (119)       481
Depreciation                        102          -        102
Amortisation of goodwill and          -        119        119
other intangible fixed
assets
Loss on disposal of fixed             1          -          1
assets
Decrease (increase) in stock         (5)         -         (5)
Decrease in debtors                  17          -         17
(Decrease) increase in              170          -        170
creditors
Increase (decrease) in               (3)         -         (3)
provision
Foreign exchange movement             -          -          -
Net cash inflow from                882          -        882
operating activities
___________________________________________________________________



(b) Analysis of changes in net debt
                                   At Cash flow  Exchange        At
                               1 July      GBPm      GBPm   30 June
                                 2004 (audited) (audited)      2005
                                 GBPm                          GBPm
                            (audited)                     (audited)

Overnight deposits                 73       172         -       245
Other cash                         63        41         -       104
Cash                              136       213         -       349
___________________________________________________________________

Short-term deposits               338       (45)        1       294
Commercial paper                  173      (119)        -        54
Liquid resources                  511      (164)        1       348
___________________________________________________________________


Cash and liquid resources         647        49         1       697
___________________________________________________________________

Debt due after more than       (1,069)        -         -    (1,069)
one year
Capital element of finance         (7)        -         -        (7)
leases
Total debt and capital         (1,076)        -         -    (1,076)
element of finance leases
___________________________________________________________________

Total net debt                   (429)       49         1      (379)
___________________________________________________________________

(c) Reconciliation of net cash flow to movement in net debt

                                          2005              2004
                                          GBPm              GBPm
                                     (audited)         (audited)

Increase in cash                           213                89
___________________________________________________________________

(Decrease) increase in                     (45)              338
short-term deposits
(Decrease) increase in                    (119)              173
commercial paper
(Decrease) increase in liquid             (164)              511
resources
___________________________________________________________________

Cash outflow resulting from                  -                76
decrease in debt and lease
financing
Foreign exchange movement                    1                 -
___________________________________________________________________
Decrease in net debt                        50               676
___________________________________________________________________

___________________________________________________________________
Net debt at beginning of year             (429)           (1,105)
Net debt at end of year                   (379)             (429)
___________________________________________________________________

(d) Major non-cash transactions

2005
Corporate reorganisation
On 13 April 2005, the High Court approved a reduction in the share capital of
BSkyB Investments Limited, a 100% owned subsidiary. This formed part of a
corporate reorganisation, allowing the Company access to additional
distributable reserves.

Disposal of GSB
In accordance with FRS 10, the Group has included the write off of GBP32 million
of unamortised goodwill in the calculation of the loss on disposal of GSB, the
effect of which has been included in the profit for the financial year. The
goodwill arose on the purchase of GSB and had previously been written off to the
profit and loss reserve as permitted prior to FRS 10. Accordingly, an adjustment
has been made to write back the GBP32 million charge to the profit and loss
reserve.

2004
Share premium reduction
On 10 December 2003, the High Court approved a reduction in the Company's share
premium account of GBP1,120 million, as approved by the Company's shareholders
at the Annual General Meeting held on 14 November 2003. The reduction had the
effect of eliminating the Company's deficit on its profit and loss account as at
30 September 2003 of GBP1,106 million, and creating a non-distributable special
reserve of GBP14 million, which represents the excess of the share premium
reduction over the deficit.

WAPTV
On 30 September 2003, the Company issued 338,755 Ordinary Shares to satisfy the
remaining contingent consideration in respect of the acquisition of the
remaining 5% interest in WAPTV Limited which occurred in May 2001.



-----------------------
This financial information does not constitute statutory accounts for the
purpose of section 240 of the Companies Act 1985. The financial information for
the year ended 30 June 2005 has been extracted from the statutory accounts of
British Sky Broadcasting Group plc for the year ended 30 June 2005, which have
not yet been filed with the Registrar of Companies, but on which the auditors
gave an unqualified report, and which did not contain a statement under section
237 (2) or (3) of the Companies Act 1985, on 2 August 2005. The preliminary
announcement was approved by the Board of Directors on 2 August 2005.

The financial information for the three months ended 30 June 2005 and 30 June
2004 is unaudited.

The financial information for the year ended 30 June 2004 has been extracted
from the statutory accounts of British Sky Broadcasting Group plc for the year
ended 30 June 2004. The statutory accounts on which the auditors gave an
unqualified report and which did not contain a statement under section 237 (2)
or (3) of the Companies Act 1985, have been filed with the registrar of
Companies.

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