BSkyB bucks downturn with introduction of HD
BSkyB has reported a 7 percent increase in adjusted revenues for the last 9 months with adjusted operating profit increasing by 13 percent to £589m, as the company added a further 80,000 new customers in the first quarter of this year and 243,000 customers opted for the Sky+HD package.
Despite the company saying that the developments are in line with forecasts, 2009 is still seen as a challenging year.
It is the growth of Sky+HD (high definition) as well as customers upgrading to Sky+ that has helped to boost revenue.
It is not all good news though as broadband growth has slowed so far this year with only 130,000 new customers taking on complete packages compared to 229,000 last year.
Sky also pulled out of the running to buy rival ISP Tiscali’s UK business and now Carphone Warehouse is looking likely as the frontrunner to buy the UK assets. However Jeremy Darroch, Sky’s chief executive, has said the company is not in a position to need to make acquisitions but all possibilities are still being considered.
As a result of the current climate, Darroch said that BSkyB are having to increase spending on marketing since more consumers opting for lower packages with upgrading becoming increasing more difficult.
Chief financial officer, Andrew Griffith, stated that the firm is in a good position to take advantage of the current climate and is already benefiting from lower advertising costs.