Feeds

Sky flexes muscles for broadband deathmatch

Media behemoth flashes financial might

Boost IT visibility and business value

BSkyB has released its annual results, parading its weapons-grade financial clout for the upcoming triple and quadruple play tussle.

Revenues were up 8 per cent to £4.15bn, while pre-tax profits were up 1 per cent to £798m. Operating profit rose 7 per cent to £877m, which was adjusted to £561m, giving earnings of 30.7 pence per share.

The £11m operating loss of Easynet, which comprised revenues of £79m and costs of £90m, was swallowed easily. Sky has so far invested net £12m in its residential broadband roll-out, including £1m in marketing, which can be expected to increase as the battle intensifies.

Sky chief James Murdoch said: "We feel encouraged by the strong demand our customers show for new entertainment and communications services."

Sky will be delivering some sport, movies and Disney content over broadband soon. Its broadband range, launched last week, starts at a "free" 2Mb connection to £10 a month for a £16Mb package, exclusive to Sky TV punters. Those satellite customers in areas lacking Easynet LLU can fork out £17 a month for 8Mb. Bosses see broadband and its fixed line phone service Sky Talk as a way of shoehorning its core pay TV business into homes.

Sky hired 1,500 new call centre staff and 600 home engineers in preparation for demand for its broadband offerings. It spent £37m on LLU over the year. Yesterday Carphone Warehouse conceded it did not prepare well enough for its launch.

Read the full statement from BskyB here (pdf).®

Boost IT visibility and business value

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Trying to sell your house? It'd better have KILLER mobile coverage
More NB than transport links to next-gen buyers - study
iWallet: No BONKING PLEASE, we're Apple
BLE-ding iPhones, not NFC bonkers, will drive trend - marketeers
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Speak your brains on SIGNAL-FREE mobile comms firm here
Is goTenna tech a goer? Time to grill CEO, CTO
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.