Sky's the limit as firm rakes in 400,000 new customers
Good times all round
BSkyB saw revenues grow but profits fall slightly for the year ended 30 June 2007.
Turnover was up 10 per cent to £4.55bn, but profits - or at least Ebitda - was down slightly at £1.01bn, compared to £1.02bn last year.
Network investment soaked up a lot of cash and Sky also made one exceptional payment of £65m to a channel provider.
Margins are still grossly healthy - gross margin is 63 per cent compared to 61 per cent last year.
The firm has enjoyed a 13 per cent increase in new customers, with high definition services reaching 292,000.
Overall, TV customer numbers are now 8.582 million, while Sky Broadband is serving 716,000.
Sky now has its own kit in 1,150 telephone exchanges around the UK, covering 70 per cent of households. And while a basic broadband service is bundled with TV, 71 per cent of its broadband customers are now choosing to pay for the service.
As a telecommunications company, Sky is shaping up well, with broadband, TV, and over half a million customers on Sky Talk. The only missing component is a mobile phone network, and that can't be absent for long.
The full results are here. ®
You work for Virgin don't you!
In response to that last comment, I was a Virgin Media customer for 5 years, and I switched to SKY this year, and what a difference!
TV that's fast, all the interactive content WORKS, the set top box doesn't crash once or twice a week, and there are more channels, and you get SKY One, Two, Three, Sky News, etc etc - all of which Virgin decided weren't important channels - apparently I'd rather see re-runs of everything instead. Thanks Virgin, but we have Channel 5 for that!
Plus SKY supply you with a broadband router which is yours to keep as part of the activation fee (try buying a decent wireless G router for £20).
The broadband itself isn't as fast as Virgin, but to buy their broadband on its own is astronomically expensive, hence I'd rather put up with (only slightly) slower internet access, but a TV service that is 200% better than Virgin's offering.
Virgin's customer service had always been bad, they never returned calls, never apologised for the problems I'd had, and in general they seemed incapable of boiling a kettle let alone deal with a query or problem. SKY in comparison have been excellent, their customer service is polite and professional, and I don't get put through to India.
I very much doubt that SKY will launch a mobile phone service because there is no market space for it anymore. It costs a lot of money for virtual network operators such as Virgin,Tesco,Mobile World and Asda Mobile and offering a very cheap services in order to retain customers would not be commercially viable at all.
Hutchison 3G(3 Mobile) is keeping in line of the competition by offering 500 minutes for £15 together with free phones to use with its service.
Asda have just launched their service offering calls to all networks from as little as 8p per minute, the charge will be probably increase once they reach 200,000 customers.
Tesco has been advertising its mobile service agressively at the begining of 2007 because they have found that customers join the service and just abandon the service due to seeing other special offers by competitors.
Vodafone keeps in line by offering unlimited calling and capped rate calls across all pay as you talk and pay monthly prices such as Stop the clock and Free weekends as well as Vodafone family which is a marketing technique used to attract friends and family to using Vodafone and it works!
And just how many SKY customers are there that just use the basic Digital TV service but use other companies such as Orange,Be-Broadband,Tiscali and Virgin Media for Broadband and phone.
SKY customers would be better off just taking out Virgin Media's 3 for £30 offer as the broadband is much more reliable and for an extra £10 they can get 100 mins and 100 texts on a Virgin Mobile phone. SKY Broadband is ADSL so they can't gaurantee you advertised speeds, at my property they can only offer 128K which is crap, but Virgin is able to offer up to 18Meg at my property. 128K by SKY is equivalent to dial up on a good day.
So SKY's broadband and its tripple/quad play plan has had its day- for now.
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Its at this point, I feel glad I don't pay for Sky. Isn't there some law about charging a fair and reasonable price? Sale of Goods Act or some such?