BSkyB records 92% profit increase for Q4 |
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Wed, 03 Aug 2005 19:05
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LONDON: Rupert Murdoch's News Corp-controlled satellite broadcaster British Sky Broadcasting, saw a phenomenal 92 per cent increase in its fourth quarter profits as it added 83,000 subscribers. The company announced its net income stood at 152 million pounds, up from 79 million pounds a year earlier. Revenue went up 14 per cent to 1.09 billion.
The company's full-year revenue and profits too went up by 32 per cent to 425 million pounds and 11 per cent to 4.05 billion pounds respectively.
The company, managed by Rupert Murdoch's son James, had gone on a spending spree to add more subscribers as it faced competition from cable TV operators and FreeView, a BBC-backed digital TV service. The company's performance is also being gauged by analysts as a barometer for the capabilities of James, who is expected to succeed his father. His elder brother Lachlan, who was deputy chief operating officer of News Corp had quit the company last week.
James Murdoch, in a statement, 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."
The company said it will reach its target of eight million subscribers by year-end. The addition of 83,000 users in the fourth quarter brought its total to 7.8 million.
BSkyB has introduced a portable wireless device, Sky Gnome, for users to listen to the audio from television or radio channels throughout their home. It is also planning to launch a high-definition television service in early 2006.
The company said its subscriber-acquisition cost for the year was 237 pounds, below the 241 pounds expected by analysts. The percentage of subscribers that leave the company each year, was an annualized 10.5 per cent in the fourth quarter and 10.3 per cent for the full year against a target of 10 per cent.
James Murdoch later told newspersons that he has no plans to quit his position in BSkyB, playing down rumours that he is tipped to succeed his father at News Corp.
'My appointment is at the discretion of the board... but it is my hope and intention to be here for the long term," he said.
BSkyB is now re-purchasing 5 per cent of the issued share capital of the company and is planning to seek investors' permission to buy back another 5 per cent.
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