Pay TV operator and broadband provider BSkyB has reported a sharp rise in its third-quarter net profit as sales of its high-definition (HD) television product soared.
The satellite TV company said it made net profits of £268m during its third quarter. This is against a net profit of £3m made during the same period in 2009 when Sky was hit with substantial charges relating to its investment in ITV.
The group said it added 62,000 customers during the quarter, taking its total subscriber base to 9.77m.
It also said it had seen a “standout” performance from its HD product during the quarter. It added 428,000 HD customers during the third quarter, which is a similar level to the Christmas quarter and 76pc higher than the third quarter of 2009. The company said customers had responded strongly to a price drop in the Sky+HD box.
BSkyB also reported that it now has 1.9 million customers taking all three of its TV, broadband and telephony products, which represents a rise of 39pc.
Meanwhile, average revenue per user now comes to £503, up 11pc year-on-year and surpassing the £500m mark for the first time.
“The business has continued to perform very well in what remains a tough consumer environment,” said BSkyB CEO Jeremy Darroch.
The company also said today it remains on track to bring 3D TV to residential customers later this year, along with its new video-on-demand service, Sky Anytime+. Both of these products will be available through Sky’s existing HD box.
Article courtesy of Businessandleadership.com