Feeds

BSkyB sees first half pre-tax profit tumble as sales climb

Now has 5.1m broadband subscribers on its books after O2 merger

Internet Security Threat Report 2014

BT's intense campaign to draw more eyeballs away from BSkyB failed to hit the pay-TV company's revenues during the first six months of its financial year.

But, while BSkyB - which is around 39 per cent owned by Rupert Murdoch - drove sales up more than 6 per cent to £3.7bn for the period ended 31 December, it did report a significant drop in adjusted pre-tax profit to the City this morning.

Profit fell 9.2 per cent to £554m compared with £610m in its first half results a year earlier.

On the broadband front, the company said it now had 5.1 million subscribers on its books.

It revealed that transmission, technology and fixed network costs rose by 15 per cent during the period to £221m as it swallowed the O2 home broadband business it acquired last year.

Fixed asset costs climbed 31 per cent to £218m, in part due to the integration of O2, BSkyB said. It saw its broadband customer base balloon by 21 per cent following the merger.

The pay-TV outfit's boss Jeremy Darroch said:

We are moving through a year of investment in which we are absorbing the one-off step up in Premier League costs well, with adjusted EBITDA flat [at £813m] thanks to a continued focus on operating efficiency.

Last week, there was speculatation that BSkyB and mobile carrier Vodafone had discussed the possibility of teaming up on a high-speed broadband service.

The companies declined to comment, however.

BT recently chucked a stink bomb in the direction of BSkyB when it paid hundreds of millions of pounds above the market odds to show all UEFA Champions League and UEFA Europa League football matches for three seasons from 2015/16 on its BT Sport television channel. ®

Internet Security Threat Report 2014

More from The Register

next story
Same old iPad? NO. The new 'soft SIMs' are BIG NEWS
AppleSIM 'ware to allow quick switch of carriers
Brits: Google, can you scrape 60k pages from web, pleeease
Hey, c'mon Choc Factory, it's our 'right to be forgotten'
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
FCC, Google cast eye over millimetre wireless
The smaller the wave, the bigger 5G's chances of success
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.