BSkyB profits surge but rivals challenge
Wednesday 01 February 2012
BSkyB yesterday underlined its financial strength with a 28 per cent surge in profits, but the pay-TV giant is facing growing pressure on subscriber numbers because of the economy and internet rivals.
Sky added just 40,000 new TV subscribers in the three months to December against 140,000 a year earlier.
Customers signing up for broadband, home phone and high-definition TV were all lower too. Sky sold a net 772,000 products to new and existing subscribers against 1.06 million.
Revenues rose 6 per cent in the last six months to £3.36bn because of a price freeze in August.
But pre-tax profits jumped to £597m, thanks to improved margins.
However, in a sign of how Sky may fear online rivals such as Netflix and LoveFilm, the chief executive, Jeremy Darroch, announced a new, cut-price internet-only TV service.
Viewers will now be able to watch Sky's movies and TV shows online or via a games console on a pay-per-programme or monthly basis, instead of signing up as subscribers.
Sky has not unveiled prices, but Netflix costs £5.99 a month.
Isis 'jihadi bride' claims forced sex with Yazidi girls is never rape because Koran condones it
Woman accidentally shoots herself in the head while posing for a selfie
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
- 1 Isis 'jihadi bride' claims forced sex with Yazidi girls is never rape because Koran condones it
- 2 Woman accidentally shoots herself in the head while posing for a selfie
- 3 Art Garfunkel: Paul Simon is a 'monster' with a Napoleon complex
- 4 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£35 - 40k + Benefits: Guru Careers: We are seeking a Software Developer (JavaS...
£30 - 35k: Guru Careers: A Senior Account Manager / SAM is needed to join the ...
£55000 - £65000 per annum + Benefits: Ashdown Group: Digital Marketing Manager...