Feeds

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

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

Boost IT visibility and business value

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. ®

The essential guide to IT transformation

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
PwC says US biz lagging in Internet of Things
Grass is greener in Asia, say the sensors
Ofcom sees RISE OF THE MACHINE-to-machine cell comms
Study spots 9% growth in IoT m2m mobile data connections
O2 vs Vodafone: Mobe firms grab for GCHQ, gov.uk security badge
No, the spooks love US best, say rival firms
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.