Sky exceeds estimates as subscriber numbers hit 8.1m

LONDON – BSkyB has added a better-than-expected 215,000 new customers in the last quarter of 2005 to hit a total of 8.1m subscribers.

Analysts had predicted an average 177,000 would join the pay-TV service, and Sky's share price rose on the news this morning by 2.16% to 496p.

James Murdoch, chief executive of BSkyB, said the comany was positioned to sustain growth, with customers saying that Sky is their preferred brand for new entertainment services.

"The business is moving forward on all fronts. In the last quarter, more customers joined Sky than at any time in the last three years, and we've seen record growth in Sky+ and multi-room households. Now nearly one in three families chooses Sky," he said.

The satellite giant also saw strong growth in earnings and cash flow. Profit before tax rose to £390m, representing a 14% increase from 2004. Profit for the period increased by 12% to £274m while revenue increased 9% to £2.1m.

Elsewhere, Sky+, the company's personal video recorder service, added over 250,000 in the three months ending December 31 to reach 1.3m subscribers, while households with more than one box -- a major target for Sky growth -- have more than doubled year on year, rising by 158,000 in the second half to almost 1m.

In its third-quarter results, released in November, Sky's subscriber figure was dented by people deserting the broadcaster, as its so-called churn rate rose to 11.7% from 10.5% in the previous quarter.

In the latest results, churn fell back down to 10.6%. Sky said this reflected the seasonal effect of Christmas and no price changes in the quarter.

In the previous quarter, the satellite giant raised the price of its services by between £1.50 to £3 a month with the introduction of new packages of channels.

Sky is now aiming to reach 10m subscribers by 2010, with 25% penetration of Sky+ and 30% multi-room penetration.

The news comes as Sky is set to launch its high-definition service providing viewers with exceptional picture quality in April.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .

Topics

Market Reports

Get unprecedented new-business intelligence with access to ±±¾©Èü³µpk10’s new Market Reports.

Find out more

Enjoying ±±¾©Èü³µpk10’s content?

 Get unlimited access to ±±¾©Èü³µpk10’s premium content for your whole company with a corporate licence.

Upgrade access

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an alert now

Partner content