‘Excellent results’ for Sky as it gains 426,000 customers


29 Jul 2011

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British Sky Broadcasting Group (BSkyB) grew revenues and profits in its full financial year as it drew more than 426,000 customers to its television and broadband offerings.

The company saw its revenues soar 16pc to £6.6bn as is sold an extra 3.8m products in the year.    

The biggest customer additions were seen in its television division, which added 327,000 customers.

The broadcaster now boasts 10.3m customers. About 3.8m of these are currently signed up to the firm’s TV HD services.

BSkyB reported earnings before interest and tax of £1.4bn in the 12 months to 30 June, which marked a 19pc increase on 2010 figures.

Operating profit was up 23pc to £1.1bn, while adjusted earnings per share grew 30pc to 41.6p.

The board announced substantial shareholder returns today with the full year dividend increasing 20pc to 23.28p.

Chairman James Murdoch also revealed plans for a £750m return to shareholders through a share buyback programme.

Hackgate

By association, BSkyB has been embroiled in the News Corporation phone hacking scandal – the firm owns a 39pc stake in the business.

It was also in negotiations about a full takeover when the revelations emerged at the beginning of this month.

The buyback and the £253m dividend payout seem to be moves taken to mollify angered shareholders.

Photo: James Murdoch: the Board unanimously voted to keep him in the BSkyB chairman’s position despite the hackgate scandal

Article courtesy of Businessandleadership.com