BSkyB set to report £230m return to profit for full year

LONDON - BSkyB is expected to announce a return to pre-tax profit of £230m, up from losses of £1.3bn last year, and a new set of financial targets aimed at rewarding shareholders when it reports its full-year results for the year to June 31 2002 on Tuesday.

Analysts expect the company to announce sales of at least £3bn tomorrow, according to a report in the Sunday Telegraph, while subscriber numbers could be as high as 6.85m, indicating that it will smash its year-end target of 7m.

The company will also announce that, for the first time since 1999 soon after Sky Digital was launched, it will begin paying dividends to shareholders to allow them to share the benefits of the company's £2bn investment in its digital network.

Sky's last full-year dividend was paid in 1998. After that it paid an interim dividend in 1999. The company is also set to announce that it intends to reduce its debt.

The news will no doubt help the company's credit rating with agencies Standard & Poors and Moody's, which are expected to upgrade its status from junk to investment grade for the first time since 2000.

On Friday, Sky was awarded the the UK TV rights to live Premiership matches for three seasons from 2004 with a price for the four packages in aggregate of £1.02bn.

The award of the rights (made in four separate packages of live matches) represents an increase in the number of live matches available to viewers and means that Sky will offer 138 live games a season from 2004, compared with 106 live games a season under the current arrangements between Sky and the Premier League.

Continued take-up of digital television means that Sky's pay-TV channels are now received in more than 10m UK households.

Speaking after the Premier League announced its decision, BSkyB chief executive Tony Ball said: "Sky is delighted to be continuing its relationship with the Premier League for a further three seasons. The new arrangements are good news for Premiership clubs and good news for viewers, who can look forward to many more matches on Sky than ever before."

Sky now faces a possible EU battle to have the deal approved.

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