BSkyB to report profits rise as it capitalises on ITV Digital demise

LONDON - BSkyB is expected to report a healthy 13% rise in full-year earnings as the Rupert Murdoch-owned satellite television company capitalises on the demise of ITV Digital.

In the year to June 30, analysts are expecting the broadcaster to report earnings before interest, tax, depreciation and amortisation of £253m, up from £224m last time. Revenues are expected to be £2.75bn compared with £2.31bn previously.

BSkyB now supplies 25% of UK homes with satellite TV services and has seen its grip on British football strengthened following the collapse of ITV Digital. It stepped in with a £95m bid to take over the coverage of the Football League, which this week begins its court battle against the ITV companies Carlton Communications and Granada.

Since the demise of ITV Digital, Sky has had a busy time. Not only did it snap up the Football League contract but, with the BBC, it won the digital licence previously operated by the defunct terrestrial service. The new free-to-air digital service is due to launch in the autumn.

It is expected that Sky will announce it now has 6.04m direct-to-home customers. The figure is an increase of 150,000 customers, giving an indication of the number of ITV Digital customers who may have switched following the demise of the service.

The company's churn rate, which remains unchanged, is remarkably low at just 10%.

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