BSkyB reports revenue and profits growth for third quarter of 2011
British Sky Broadcasting has announced revenue growth of 6% to £1.66bn and an operating profit growth of 16% for its results during the third quarter of 2011. BSkyB saw an increases in operating profit to £296m during that period, with a growth in customers of 77,000 while 2.9m customers (29%) were found to be taking TV, broadband and telephone services from the company. Sky Go, which allows customers to watch the broadcaster’s channels on their PC, also saw 1.6m customers sign up in the first three months of the package. Jeremy Darroch, Chief Executive, commented: "We continue to deliver strong financial results and good growth in customers and products. In tough market conditions, our move to more broadly based growth and multiple products is serving us well. New customers are choosing Sky over other providers, existing customers are taking more from us and our financial performance is accelerating, with another quarter of double-digit growth in operating profit, EPS and free cash flow. "Looking ahead, the environment is likely to remain challenging as a result of the pressures facing consumers in the UK and Ireland. Our job is to give customers the quality and value they're looking for, with a better choice of programmes, more innovation and peace of mind with a price freeze for 12 months. In particular, customers can look forward to more outstanding TV as we step change our investment in new British comedy and drama, begin coverage of Formula 1 and continue to offer the best US shows like Glee, Terra Nova and Boardwalk Empire." The broadcaster also announced an increase in programming costs, rising by £53m to £535m as it expanded its programming. Entertainment costs account for £26m, including investment in Sky Atlantic and addition UK commissioned content, while Sport also increase by £15m, with investment in covering India’s tour of England and the West Indies Twenty20 series. Costs from third parties also increase by £9m with an additional nine HD channels and high subscriber volumes, as Sky saw 24% growth in HD customers, while movies and news costs were found to be around the same level as the previous year.