Sky profits double as it faces shareholders' questions

LONDON – BSkyB has reported that first-quarter operating profit has doubled to £151m, as revenues climbed 17% during a strong third quarter that saw it hit its target of 7m subscribers three months early.

Revenues for the first quarter were £850m, boosted by the addition of 170,000 new subscribers, bringing the total number to 7.015m. The company maintained the level of churn -- the rate at which people cancel their contracts -- at 9.6%.

Annual revenue per user rose £18 over the year to £366 and is on track to hit its target of £400 in 2005. This will be boosted by price changes in the UK and Ireland, which come into play in January.

Ad revenues rose 7% to £64m and interactive revenues increased 70% to £75m.

Today, BSkyB's board is set to meet at its annual meeting on boardroom appointments and executive remuneration with shareholders, who will vote on the appointment of James Murdoch as a director and the re-election of directors who were involved in his appointment.

Shareholders are said to be split over Murdoch's appointment to replace Tony Ball, who left on November 4.

Some shareholders are expected to vote against the new CEO James Murdoch in protest against the way his appointment was handled.

They may also vote against the re-election of directors who were involved in his appointment, including Lord St John of Fawsley, the head of the CEO nominations committee.

Lord St John is being replaced by Lord Rothchild as senior independent director. Lords Rothschild is being invited by the board to fill the new role of non-executive deputy chairman, alongside chairman Rupert Murdoch.

The shareholder meeting will take place at 11.30am today.

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

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