LONDON (Brand Republic) - UK satellite broadcaster BSkyB has posted first-half pre-tax losses of £260m, up from £60m for the same period last year.
Revenues increased by 28% to £1.07bn against the first half of 1999. However, this was offset by a rise in programming and subscriber costs to £1.04bn as the broadcaster continues to give free set-top boxes to customers to speed up the switch from its analogue to digital service.
The group has had to write off a £25m investment in new-media interests as a result in the downturn of internet stocks.
The company, in which News Corporation has a 37.5% stake, last-year announced £250m of investment in new media and e-commerce companies including Streets Online, Gameplay and Toyzone.
BSkyB鈥檚 40% shareholding in German pay-TV group, Kirch -- which is experiencing slow subscriber growth and a high churn rate -- experienced losses of £46m during the six months to December 31.
However, the UK鈥檚 biggest pay-TV company reported that it has exceeded its subscriber target of 5m customers, while its multichannel offering, under the Sky brand, has increased audience share by 26% during the last three months of 2000 to 5.7%.
Sky Sports signed up its five-millionth customer in December. BSkyB astonished the industry last summer when it paid £1.1bn for the live rights to 66 of the Premier League鈥檚 football matches.