SOURCE: British Sky Broadcasting Group PLC

July 26, 2013 02:06 ET

British Sky Broadcasting Group PLC: Results for the twelve months ended 30 June 2013

Middlesex, UK--(Marketwired - Jul 26, 2013) -




                     BRITISH SKY BROADCASTING GROUP PLC
              Results for the twelve months ended 30 June 2013

               RECORD RESULTS. STRONG PLANS FOR 2013/14

                      Adjusted results           Reported results
Twelve months    2012/13   2011/12 Variance   2012/13  2011/12 Variance
to 30 June
Revenue        GBP7,235m GBP6,791m      +7% GBP7,235m GBP6,791m     +7%
EBITDA         GBP1,692m GBP1,567m      +8% GBP1,669m GBP1,587m     +5%
Operating
profit         GBP1,330m GBP1,223m      +9% GBP1,291m GBP1,243m     +4%
Earnings
per share          60.0p     50.8p     +18%     60.7p     52.6p    +15%
(basic)

Record financial and operational performance on the back of strong
demand

- Paid-for subscription product growth of 3.3 million to a total of
  31.6 million
- Revenue of GBP7,235 million, up 7%
- EBITDA of GBP1,692 million, up 8% and operating profit of GBP1,330
  million, up 9%
- Basic earnings per share of 60.0p, up 18%
- Free cash flow in excess of GBP1 billion
- ARPU of GBP577, up GBP29 year on year

New services resonating strongly with customers

- 170% growth in internet-connected Sky+HD boxes to 2.7 million
- 19% increase in Sky Go users to 3.3 million
- Fivefold increase in On Demand downloads
- 200% growth in Sky Store video rentals

Strong set of plans for 2013/14

- Extending leadership in core areas:
  o New slate of original British drama and outstanding year for Sky
    Sports
  o Offer best quality and value in broadband
  o Build advantage in customer service

- Investing to accelerate growth and returns from new services:
  o Accelerate roll-out of connected boxes
  o Extend leadership in mobile video
  o Buildmarket-leading on demand service
  o Volume-driven impact of GBP60 million to GBP70 million expected on
    operating profit in 2013/14 with rapid returns from accelerated
    take-up and usage of new services

Growing returns to shareholders

- 18% increase in full year dividend to 30.0p per share, ninth
  consecutive year of growth
- GBP500 million capital return to shareholders via share buy-back

All figures and growth rates quoted above are based on adjusted results

Jeremy Darroch, Chief Executive, commented:"We have had another very good
year of growth, with revenues up 7%,
operating profit up 9% and earnings per share up 18%. The strength of
our financial performance is a result of our successful transition to
more broadly-based growth and sustained investment to create a better
service and wider range of products for customers."On the back of this
performance, we are increasing returns to
shareholders with the ninth consecutive rise in the ordinary dividend
and we intend to seek approval for a further GBP500 million of share
repurchases."Over the course of the year, we added more than three million
new
paid-for subscription products. We finished the year strongly with 11%
organic growth in product sales for the fourth quarter, reflecting good
demand in all areas. It was a particularly significant quarter for home
communications as good organic growth, combined with the consolidation
of the consumer broadband and fixed-line telephony business acquired
from O2, delivered well over a million product additions."In our television
business, there has been an excellent response from
customers to our new services. We've seen an explosion in on-demand and
mobile viewing as more people connect their Sky boxes to broadband and
watch TV on laptops and mobile devices with Sky Go. Sky Go Extra, our
new subscription service, has already attracted more than 150,000
customers in just five months. Customers tell us they get huge value
from these services. The benefits to our business are equally strong
through take-up of higher-tier packages, expanded revenue opportunities
and improved customer satisfaction. We see an exciting opportunity for
future growth in this area and we intend to increase investment over
the next year to accelerate growth and returns from these new services."We
expect the consumer environment to remain challenging over the
coming twelve months. Against that backdrop, we have a strong set of
plans that will extend our leadership in core areas - on screen, in
home communications and in front-line service delivery; accelerate
growth in new services; and improve efficiency to build a bigger, more
profitable business for shareholders."

Results highlights

Customer Metrics (unaudited)
Consolidated for the acquisition of O2's consumer broadband and
fixed-line telephony business

                            As at     As at Annual   Quarterly Growth
                        30-Jun-13 30-Jun-12 growth       to 30-Jun-13
Paid-for subscription      31,634    28,365 +3,269             +1,406
products ('000s)
 TV                        10,422    10,288   +134                +34
 HD                         4,786     4,343   +443               +117
 Multiroom                  2,489     2,402    +87                +13
 Sky Go Extra                 166       -     +166               +122
 Broadband                  4,906     4,001   +905               +519
 Telephony                  4,501     3,768   +733               +293
 Line rental                4,364     3,563   +801               +308

Paid-for products per         2.8       2.7
retail customer

New connected TV
services ('000s)
 Internet-connected          2,709      995 +1,714               +425
 Sky+HD boxes
 Sky Go unique               3,257    2,740   +517                 -5
 users

Other metrics
Total customers ('000s)     14,830   14,278   +552               +217
 Retail customers           11,153   10,606   +547               +341
 Wholesale                   3,677    3,672     +5               -124
 customers (4)

ARPU (2) (5)                GBP577   GBP548 +GBP29
Triple-play(5)                 35%      32%    +3%
Churn (2) (5)                10.9%     9.9%  +1.0%

Additional KPI summary tables containing further detailed disclosure,
including the effect of the O2 consolidation in the fourth quarter may
be found at Schedules 1 and 2.

Business Performance (1)        12 months  12 months to
(unaudited)                  to 30-Jun-13     30-Jun-12      Movement
Revenue                         GBP7,235m    GBP6,791m            +7%
Adjusted EBITDA                 GBP1,692m    GBP1,567m            +8%
% Adjusted EBITDA profit margin     23.4%        23.1%         +30bps
Adjusted operating profit       GBP1,330m    GBP1,223m            +9%
Adjusted profit before tax      GBP1,264m    GBP1,148m           +10%
Adjusted basic earnings per         60.0p        50.8p           +18%
share (3)
Adjusted free cash flow         GBP1,028m      GBP910m           +13%
Net debt as at the end of the   GBP1,183m      GBP876m
period

1 A reconciliation of adjusted operating profit, adjusted EBITDA and
adjusted PBT to reported measures as well as cash generated from
operations to adjusted free cash flow and net debt is set out in
Appendix 2.

2 Quarterly annualised.

3 Adjusted basic EPS is calculated from adjusted profit for the period.
A reconciliation of reported profit to adjusted profit is set out in
note 6 to the consolidated financial information.

4 Wholesale customers taking at least one paid for Sky channel. The
customer numbers are as reported to us at May 2013.

5 Other metrics to include O2 broadband and fixed-line telephony
customers from Q1 2013/14 onwards.

SUMMARY OF OPERATIONAL AND FINANCIAL PERFORMANCE

We delivered a very strong performance for the year with good operating
growth translating into another record set of financial results. A 7%
increase in revenues, combined with a continued focus on cost
efficiency, led to an 8% increase in adjusted EBITDA and an 18% growth
in adjusted basic earnings per share to 60.0p, more than double the
level of five years ago. The full year dividend of 30.0 pence per share
is 18% higher year on year, the ninth consecutive year of growth.

Our successful transition to more broadly-based growth, combined with
the acquisition of O2's consumer broadband and fixed-line telephony
business ("O2"), delivered an increase of 1.4 million subscription
products in the fourth quarter. We grew subscription products by
700,000 organically, with a further 706,000 as a result of the
acquisition of the O2 business. In all, we added 3.3 million
subscription products over the year to reach 31.6 million, more than
double the level of five years ago. Customers now take an average of
2.8 paid-for products from Sky.

We closed the quarter with 11.2 million retail customers, an increase
of 341,000 in the quarter. Of these, after reflecting overlap of the
two customer bases, 290,000 joined Sky through our purchase of the O2
business.

ARPU continued to rise to GBP577, up GBP29 on last year. Quarterly
annualised churn was 10.9%.

We saw good growth in the quarter across all products adding another
117,000 HD customers and 122,000 Sky Go Extra customers. In all, Sky Go
Extra, our new paid-for mobile TV service, had a total of 166,000
paying customers at year end, just five months after launch. The
transactional element of NOW TV, the sports day pass, got off to a good
start as more than 50,000 individual users purchased day passes in the
first three months. We continue to roll-out NOW TV across multiple
platforms having launched on PS3, and this week concluded an exclusive
agreement with LG by which they will make NOW TV available on their
Smart TVs.

Home communications also had a very good quarter on the back of our
broadband value campaign. Before accounting for the acquisition of O2,
we added 119,000 customers in broadband, 140,000 in telephony and
155,000 in line rental. The acquisition of O2 added a further 400,000
broadband subscribers and 153,000 each of telephony and line rental. In
all, 35% of our customer base now take all three of TV, broadband and
telephony from Sky, up from 32% last year.

STRONG SET OF PLANS FOR 2013/14

We enter the new financial year in a strong position to continue to
grow our business and create value. Our plan for 2013/14 will focus on
two broad areas: firstly, extending leadership in our core areas of
strength, on screen, in home communications and in our front-line
customer service delivery; and secondly, accelerating the take-up and
usage of new services where we are already seeing a very strong
response from customers.

Products

Our focus on providing customers with more ways to watch TV is
delivering good results with strong momentum in the take-up and usage
of our connected TV services.

More than 2.7 million customers, one quarter of our TV base, have now
connected their Sky+HD boxes to broadband, a rise of 170% on last year.
Combined with an expanded range of content available on demand, this
led to a fivefold increase in the number of average weekly On Demand
downloads over the year. Meanwhile, our mobile video service Sky Go
continues to perform well with quarterly users up 19% to 3.3 million,
166,000 of whom are now paying GBP5 a month for our new subscription
service Sky Go Extra. Our transactional movie rental service, Sky
Store, also grew strongly, with the number of films rented up threefold
on last year.

With the momentum that we have established, we will push harder in 2013
/14 to bring forward both growth and returns for the business.

There are three key elements to our plan: first, we will step up the
roll-out of connected boxes across our base by offering a low-cost
wireless connector to customers that have a Sky+HD box but haven't yet
connected it to broadband. We will also launch a new WiFi-enabled
Sky+HD box as standard from September, rolling it out to targeted
groups of customers who don't yet have Sky+HD boxes. This acceleration
of our connected Sky+HD platform will open up access to the full range
of On Demand services, increasing the value we deliver to customers and
providing an important platform from which to grow new revenue streams.

Additionally, we plan to extend our reach into new segments of the
market with the launch of a NOW TV IP streaming box. This will be
available from today for just GBP9.99 and will provide an attractive new
way for customers to access our content via NOW TV.

Second, we are going to extend the leadership that we have established
in mobile TV with Sky Go. We will add more than ten new channels to the
service next year and continue to improve functionality. On the back of
this, we will increase our marketing to drive greater usage and upsell
to our new subscription service Sky Go Extra. For GBP5 a month, this
lets customers register up to four devices per account and download
movies and TV shows to watch offline.

Third, we are going to enhance our market-leading on demand service. We
plan to add more than 20 new channels to our Catch Up TV service and
develop the quality of our Box Sets, increasing the hours of content
available by around 50% in the next year. Both initiatives are aimed at
driving on-demand usage and reinforcing our platform superiority. We
will monetise this usage with the new Entertainment Extra+ bundle. In
addition, we will expand Sky Store, our movie rental service offering
customers the choice of thousands of blockbuster movies.

Investment in these three areas will enable us to meet the growing
customer demand for new services and drive greater returns from
increased take-up of higher-tier packages; higher transactional
revenues; increased penetration of NOW TV; and higher levels of
customer satisfaction and advocacy.

Overall, we expect accelerating the take-up and usage of new services
to have an impact of between GBP60 million and GBP70 million on 
operating profit in 2013/14. The majority of the investment will be in
hardware and largely volume-driven. We expect the aggregate effect of
investment and higher revenue to be broadly neutral in 2014/15 and to
increase our profits in 2015/16 and thereafter.

Content

In 2013/14, we will continue to improve the quality of our on-screen
offering building on the progress we have made in the past year.

In sport, the summer got off to a great start with the Lions Tour to
Australia attracting record audiences for Rugby Union on Sky, with
figures for the Test series up 85% on 2009. Meanwhile, coverage of the
Ashes started well this month, with the average audience to the first
test up almost 20% on the last English Ashes series. The coverage
benefited from having its own channel for the first time following the
temporary rebrand of Sky Sports 2 HD as Sky Sports Ashes HD.

We continue to expand the breadth of our offering in sport having
secured a number of key rights agreements in the year. These include
live rights to all Home Nations and Republic of Ireland qualification
matches for UEFA Euro 2016 and 2018 FIFA World Cup and a new three-year
broadcasting agreement with the Football League. Starting in August
2015, this will give us 148 live games each season from the Football
League, Capital One Cup and Johnstone's Paint Trophy.

Elsewhere, we have continued to strengthen our entertainment offering
with a good response from customers. An Idiot Abroad 3 on Sky 1
delivered the highest weekly audience ever in the channel's history,
taking account of live, On Demand and time-shifted viewing. US
acquisitions also performed strongly across the portfolio. Arrow on Sky
1 was the most successful US drama in pay TV history averaging 1.5
million viewers per episode; The Following was the highest-rating
series ever on Sky Atlantic; while Elementary has become the
highest-rating series ever on Sky Living. Meanwhile, season 3 of Game
of Thrones broke new records for On Demand viewing across all platforms
including more than 1 million On Demand downloads through the set-top
box and 2.3 million views over Sky Go.

In all, the number of entertainment shows attracting an audience of
more than 1 million rose 200% in the last two years to 122.

Looking ahead, we are taking our next big step in original British
content this year with a big step up in commissioned drama across the
portfolio. We currently have close to 90 hours in production with
highlights including The Tunnel, a ten-part crime drama, based on the
format of The Bridge and co-produced with Canal+ and Fleming, a new
four-part drama about the life of the celebrated James Bond creator,
Ian Fleming.

Service

In an environment where customers are taking a broader set of products
and services from us, customer service is an increasingly important
differentiator. Sky has consistently been top of Ofcom's Customer
Satisfaction survey in all three categories of TV, broadband and
telephony.

We know that efficient service is better service. We aim to achieve
further improvements in service quality this year by rolling out our'One
Service' pilot. We have been testing One Service for a number of
months with the aim of providing customers with a more joined-up
service experience. As part of this, we are bringing around 700
engineers from our outsource partner AVC in house in October to help
achieve better coordination between the customer call centres and
engineers in the field. Results from the pilot have been excellent with
first-time resolution scores up 10% and our net promoter score, a key
measure of customer advocacy, three times higher than previously.

BROADER CONTRIBUTION

Our partnership with British Cycling delivered further success this
month with Chris Froome's victory in the Tour de France, the 100th
anniversary year of the event and the second consecutive win for Team
Sky. This is a great success story for British sport that we hope will
deliver another boost to grassroots cycling and inspire even more
people to get out and ride their bikes.

This year marked the tenth anniversary of Sky Sports Living for Sport,
our programme to help the confidence and life skills of young people
using the power of sport. During the quarter, we reached our target of
one third of all UK secondary schools participating in the scheme. With
1,500 schools now taking part, we have doubled the size of the
initiative in the past year, growing it tenfold in the last four years.
In May, we expanded the programme to Ireland where we aim to engage a
third of all schools within three years. Additionally, we announced a
long-term partnership with David Beckham who will support the Sky
Sports Living For Sport programme as a Sky ambassador.

In the arts, our second Sky Arts Ignition project, where we collaborate
with major arts organisations and artists to create new works, opened
at the V&A in London. Memory Palace opened in June, the result of a
collaboration between Sky Arts and the V&A to bring an original work of
fiction by Hari Kunzru, Memory Palace, to life.

DETAILED FINANCIAL PERFORMANCE

Unless otherwise stated, all figures and growth rates included below
exclude exceptional items. Adjusting items are detailed on page 10 and
in Appendix 2.

As we consistently executed our strategy throughout the year, we
delivered excellent growth in each of revenue, EBITDA, earnings and
free cash flow. For the twelve months ended 30 June 2013, revenue
growth of 7% combined with our continued focus on operating efficiency
to deliver growth in profit before tax of 10% and earnings per share of
60.0p, up 18%.

Revenue

Group revenue increased by 7% to GBP7,235 million (2012: GBP6,791
million), with good growth in both retail and wholesale operations and
improvement in the more cyclical operations in advertising and Sky
Business (pubs and clubs).

Retail subscription revenue grew by 6% to GBP5,951 million (2012:
GBP5,593 million), reflecting continued product and customer growth and
the benefit of the price rise which came into effect in September 2012.
Sky Business returned to growth in the second half to achieve revenue
growth of 1% for the full year.

We delivered a strong performance in wholesale subscription revenue
which increased by 13% to GBP396 million (2012: GBP351 million).
Although the volume of wholesale subscribers was flat year on year, we
continue to benefit from greater take-up of Sky premium channels on
other platforms.

Advertising revenue was flat year on year at GBP440 million (2012:
GBP440 million), despite the impact of the Olympics in our first
quarter. Sky Media gained market share across the year to reach 22.2%,
with the majority of this growth underpinned by increased ratings for
our media partner channels with whom we share revenue upside. AdSmart,
our tailored advertising product, is on track to launch this summer
with good interest from potential advertisers.

Installation, hardware and service revenue of GBP87 million was lower
year on year (2012: GBP98 million) driven by improved product
reliability, an increased number of customer self-installations, and
higher right-first-time engineer visits.

Other revenue increased by 17% to GBP361 million (2012: GBP309 million)
due to continued strong performance from Sky Bet which saw an increase
in unique users in the year, and growth in international programme
sales due to more original commissions.

Direct Costs

Programming costs increased by 8% to GBP2,486 million (2012: GBP2,298
million) in line with our expectations. Sports accounted for the
majority of the absolute increase due to the inclusion of Formula 1,
Ryder Cup and Lions costs not in the prior year. Movie costs increased
and included investment in expanded rights agreements to support new
product offerings such as Sky Go Extra and NOW TV. Entertainment costs
saw the largest percentage increase (+15% year on year) as we continued
to invest in new and exclusive UK-commissioned content across our
channel portfolio.

Our work on network efficiency within our communications operations
resulted in excellent operating leverage in direct network costs, up
only 6% to GBP715 million (2012: GBP676 million) despite a 15% increase
in organic home communications product volumes.

Other Operating Costs

We continued to focus on costs and once again delivered a strong
performance, with other operating costs reducing as a percentage of
sales by 80 basis points. Within other operating costs, every cost line
reduced as a percentage of sales year on year, continuing our approach
of seeking efficiency in our cost base to improve margins and
reinvestment where customers see value.

Marketing costs of GBP1,116 million (2012: GBP1,064 million) reduced by
30 basis points as a percentage of sales. Lower cost route-to-market
sales and lower acquisition volumes helped to offset additional
advertising spend to support the launch of NOW TV and a national
broadband campaign which included the launch of fibre in the second
half of the year.

Subscriber management and supply chain costs were up 4% at GBP647
million (2012: GBP621 million) driven largely by higher volume of set-
top box sales to Sky Italia and our own higher broadband volumes.

Transmission, technology and fixed network costs increased by a net 2%
to GBP401 million (2012: GBP395 million) due to the increased
transmission of additional content from the Formula 1 channel, Sky Go,
NOW TV and On Demand largely offset by continued efficiencies.
Administration costs were up 5% at GBP540 million (2012: GBP514
million) reflecting the biennial phasing of our share incentive plans.
Excluding this, administration expenses would have been flat on last
year.

Profits and Earnings

EBITDA of GBP1,692 million was up strongly at 8%. Depreciation and
amortisation of GBP362 million increased 5% year on year, largely due to
new products being depreciated for the first time and a higher
proportion of intangible capital expenditure on assets with shorter
economic lives. Operating profit of GBP1,330 million was up 9%.

Profit before tax was GBP1,264 million (2012: GBP1,148 million), which
included the Group's share of joint ventures and associates' profits of
GBP37 million (2012: GBP32 million) and a net interest charge of GBP103
million (2012: GBP107 million). Taxation for the period was GBP295
million (2012: GBP273 million). Our adjusted effective tax rate was 23%
(2012: 24%), benefiting from the reduction in the rate of UK
corporation tax on 1 April 2012 from 26% to 24% and 1 April 2013 to 23%.

Profit after tax for the year was GBP969 million (2012: GBP875 million),
generating earnings per share of 60.0 pence (2012: 50.8 pence). Over
the year the weighted average number of shares excluding those held by
the Employee Share Ownership Plan ('ESOP') for the settlement of
employee share awards was 1,614 million (2012: 1,721 million). The
number of shares, excluding the ESOP shares, at the end of the year was
1,573 million (2012: 1,658 million).

Adjusting Items

Reported profit after tax of GBP979 million (2012: GBP906 million) includes
a net exceptional gain of GBP10 million. In addition to the
gain of GBP26 million recognised in previous quarters, we incurred a
GBP15 million charge related to the acquisition of O2's consumer
broadband and fixed-line telephony business, and GBP33 million from a
corporate efficiency programme including the redundancy of
approximately 250 head office employees. Other adjusting items were a
GBP23 million gain relating to mark to market values of derivative
financial instruments and a GBP17 million gain relating to the tax
exceptionals and the tax effect on all adjusting items. Full details of
all of these items are set out in Appendix 2.

Cash Flow & Financial Position

Adjusted free cash flow was 13% higher at GBP1,028 million (2012:
GBP910 million) reflecting strong growth in adjusted EBITDA, a positive
working capital movement, lower interest and capital expenditure.

Capital expenditure of GBP454 million (2012: GBP457 million) was
slightly lower than last year. Phasing of spend throughout the year
picked up in the fourth quarter as we started the construction of a new
building on our main site and commenced the integration of O2 broadband
customers.

Net debt increased to GBP1,183 million (2012: GBP876 million) primarily
as a result of the share buy-back and dividend growth. Gross debt was
GBP2,593 million, with GBP1,410 million of cash and equivalents at 30
June 2013. The Group's liquidity and headroom remain comfortable.

Uses of Capital and Distributions to Shareholders

Our policy on use of capital continues to focus on four consistent
areas: organic growth, regular dividends, acquisitions and share
repurchases. We are a growth company and our first priority is
investing in areas in which we see the opportunity to add revenues and
grow earnings. Today's investment of around GBP60 million to GBP70
million in organic growth during 2013/14 is a good example of such an
opportunity.

At the same time, we understand the value our shareholders place on a
growing regular return and have once again increased our ordinary
dividend in line with earnings growth, maintaining a sector-leading
payout ratio of fifty per cent. The Directors' proposed final dividend
of 19.0 pence per share takes the total dividend payable in respect of
the financial year to 30.0 pence per share, an increase of 18% over
prior year and almost double the level of six years ago. We have shown
through our past successful investments in both Broadband and HD that
our financial flexibility enables us to balance both investment in
growth and cash returns to shareholders. Consequently, looking to the
year ahead we anticipate continued growth in the ordinary dividend.

The ex-dividend date will be 13 November 2013 and, subject to
shareholder approval at the Annual General Meeting to be held on 22
November 2013, the final dividend of 19.0 pence will be paid on 6
December 2013 to shareholders appearing on the register at the close of
business on 15 November 2013.

Finally, we will continue to look to deploy our balance sheet strength
in a disciplined way to enhance returns for shareholders via
acquisitions, should attractive opportunities present themselves, or
share repurchases. To this end, we intend to seek shareholder approval
at the Company's AGM for a further GBP500 million of share repurchases.

As with the current share repurchase programme, we have entered into an
agreement with Twenty-First Century Fox, Inc. (formerly known as News
Corporation) (and others) under which, following any market purchases
of shares by the Company, Twenty-First Century Fox, Inc. will sell to
the Company sufficient shares to maintain its percentage shareholding
at the same level as applied prior to those market purchases, ensuring
that there will be no change in Twenty-First Century Fox, Inc.'s
economic or voting interests in the Company as a result of the share
buy-back programme. The agreement is conditional on the appropriate
shareholder approvals being granted.

Schedule 1 - KPI Summary

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

Total paid-for subscription
products                            25,375 26,058 26,830 27,734  28,365

 TV                                 10,187 10,213 10,253 10,268  10,288
 Sky+HD                              3,822  3,925  4,063  4,222   4,343
 Multiroom                           2,250  2,295  2,350  2,378   2,402
 Sky Go Extra                            -      -      -      -       -
 Broadband                           3,335  3,485  3,651  3,863   4,001
 Telephony                           3,101  3,248  3,407  3,627   3,768
 Line Rental                         2,680  2,892  3,106  3,376   3,563

New connected TV services                -  1,829  2,549  3,211   3,735
Connected HD boxes                       -    204    442    604     995
Sky Go unique users                      -  1,625  2,107  2,607   2,740

Total products and services         25,375 27,887 29,379 30,945  32,100

Other metrics:
Retail customers                    10,294 10,371 10,471 10,549  10,606
Wholesale customers                  3,522  3,569  3,629  3,657   3,672
Total customers                     13,816 13,940 14,100 14,206  14,278

ARPU (GBP)                          GBP538 GBP535 GBP544 GBP546 GBP5487
Triple-play %                          27%    28%    29%    31%     32%
Churn                                10.4%  11.1%   9.6%  10.1%    9.9%

Fixed Network Metrics

On-net base                          3,045  3,205  3,403  3,636   3,778
 MPF base                            1,686  1,869  2,146  2,423   2,588
 SMPF base                           1,359  1,336  1,257  1,213   1,190

 MPF %                                 55%    58%    63%    67%     69%
 SMPF %                                45%    42%    37%    33%     31%

Off-net base                           290    280    248    227     223

Total Broadband                      3,335  3,485  3,651  3,863   4,001

On-net %                               91%    92%    93%    94%     94%

Total no. of LLU exchanges           1,577  1,732  1,907  1,964   1,965



All figures (000)                                 FY12/13
unless stated                             Q1     Q2     Q3     Q4


Total paid-for subscription products  28,898 29,513 30,228 31,634

 TV                                   10,308 10,358 10,388 10,422
 Sky+HD                                4,468  4,561  4,669  4,786
 Multiroom                             2,423  2,467  2,476  2,489
 Sky Go Extra                              -      -     44    166
 Broadband                             4,103  4,235  4,387  4,906
 Telephony                             3,888  4,022  4,208  4,501
 Line Rental                           3,708  3,870  4,056  4,364
New connected TV services              4,023  4,781  5,546  5,966
Connected HD boxes                     1,255  1,715  2,284  2,709
Sky Go unique users                    2,768  3,066  3,262  3,257

Total products and services           32,921 34,294 35,774 37,600

Other metrics:
Retail customers                      10,654 10,742 10,812 11,153
Wholesale customers                    3,714  3,751  3,801  3,677
Total customers                       14,368 14,493 14,613 14,830

ARPU (GBP)                            GBP550 GBP568 GBP576 GBP577
Triple-play %                            33%    33%    34%    35%
Churn                                  10.9%  10.3%  10.8%  10.9%

Fixed Network Metrics

On-net base                            3,882  4,031  4,190  4,696
 MPF base                              2,762  2,926  3,159  3,359
 SMPF base                             1,120  1,105  1,031  1,337
 MPF %                                   71%    73%    75%    72%
 SMPF %                                  29%    27%    25%    28%

Off-net base                             221    204    197    210

Total Broadband                        4,103  4,235  4,387  4,906

On-net %                                 95%    95%    96%    96%

Total no. of LLU exchanges             2,036  2,108  2,202  2,323


Schedule 2 - Impact of O2 consumer broadband and fixed-line telephony
acquisition

All figures (000)
unless stated                                      FY12/13
                                                 Q4         Q4
                                         Q4 organic   acquired      Q4
                                    opening  growth growth (O2) closing

Total paid-for subscription products 30,228     700        706   31,634

 TV                                  10,388      34              10,422
 Sky+HD                               4,669     117          -    4,786
 Multiroom                            2,476      13          -    2,489
 Sky Go Extra                            44     122          -      166
 Broadband                            4,387     119        400    4,906
 Telephony                            4,208     140        153    4,501
 Line Rental                          4,056     155        153    4,364

New connected TV services             5,546     420          -    5,966
Connected HD boxes                    2,284     425          -    2,709
Sky Go unique users                   3,262      -5          -    3,257

Total products and services          35,774   1,120        706   37,600

Customers
Retail customers                     10,812      51        290   11,153
Wholesale customers                   3,801    -124          -    3,677
Total customers                      14,613     -73        290   14,830


Enquiries:

Analysts/Investors:

Edward Steel              Tel:  020 7032 2093
Lang Messer               Tel:  020 7032 2657

E-mail:  investor-relations@bskyb.com 

Press:

Alice Macandrew           Tel:  020 7705 3000
Stephen Gaynor            Tel:  020 7705 3000

E-mail:  corporate.communications@bskyb.com 

There will be a presentation for analysts and investors at 9.00 a.m
(BST) at Allen & Overy, One Bishops Square, London, E1 6AD. CEO, Jeremy
Darroch and CFO, Andrew Griffith, will present. Participants should
register by contacting Camilla Regan on +44 20 7251 3801 or at
 camilla.regan@RLMFinsbury.com .

There will be a separate conference call for US analysts and investors
at 10.00 a.m. (EDT). To register for this please contact Dana Diver at
Taylor Rafferty on +1 212 889 4350. Alternatively you may register
online by using the following link
 http://invite.taylor-rafferty.com/_bskyb/2013Q2CC/Default.htm .

A live webcast of the UK and US call will be available to analysts and
investors via the BSkyB website at  http://www.sky.com/corporate .
Replays will be subsequently available.

Use of measures not defined under IFRS

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

Forward looking statements

This document contains certain forward looking statements with respect
to the Group's financial condition, results of operations and business
and management's strategy, plans and objectives for the Group. These
statements include, without limitation, those that express forecasts,
expectations and projections, such as forecasts, expectations and
projections in relation to new products and services, the potential for
growth of free-to-air and pay television, fixed-line telephony,
broadband and bandwidth requirements, advertising growth, DTH and OTT
customer growth, Multiroom, On Demand, NOW TV, Sky Go, Sky Go Extra,
Sky+HD and other services, revenue, administration costs and other
costs, advertising growth, churn, profit, cash flow, product
penetration, our broadband network footprint, content, wholesale,
marketing and capital expenditure and proposals for returning capital
to shareholders.

Although the Company believes that the expectations reflected in such
forward looking statements are reasonable, these statements are not
guarantees of future performance and are subject to risks,
uncertainties and other factors, some of which are beyond our control,
are difficult to predict and could cause actual results to differ
materially from those expressed or implied or forecast in the forward
looking statements. Information on the significant risks and
uncertainties are described in the "Principal risks and uncertainties"
section of Sky's Annual Report for the full year ended 30 June 2012 (as
updated in Sky's results for the six months ended 31 December 2012).
Copies of the Annual Report and 31 December 2012 results are available
from the British Sky Broadcasting Group plc 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.

Glossary of Terms

A glossary of terms is included within the Annual Report and on our
corporate investor relations web page at  http://corporate.sky.com/ 
investors/glossary .


Click on or paste the following link into your web browser to view
associated PDF document
 http://www.rns-pdf.londonstockexchange.com/rns/2058K_-2013-7-25.pdf 



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          The company news service from the London Stock Exchange

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