The satellite broadcaster gained a slower subscriber growth than expected, with 66,000 net new subscribers, putting chief executive James Murdoch in the hot seat.
This was below the average of 100,000 a quarter it needs to meet its target of 8m by the end of 2005, and below weekend predictions of about 85,000. It currently has around 7.2m subscribers.
Murdoch Jnr, who was revealed to be on a salary package worth £750,000, plus 450,000 shares in an incentive scheme, claimed that slower subscriber growth reflected the company's decision to pull back on marketing.
According to Murdoch Jnr, chief executive of BSkyB, said: "Sky continues to deliver improvement in its financial performance, and remains on track to hit all operational and financial targets. Slower direct-to-home subscriber growth during the quarter reflected our decision to pull back on platform marketing in a seasonally quiet period."
He said Sky was still on track to achieve its 8m subscribers target.
In the third quarter to March 31, Sky reported an operating profit of £438m, an increase of 76%. Pre-tax profit was at £359m compared with a restated £49m a year ago. Profit after tax was £243m, from £28m a year ago. Total revenue was increased by 16% to £2.7bn.
BSkyB initially agreed to sub-license rights for Premier League matches to another broadcaster. The BBC did not bid for the rights because SKY and the EC demanded that the matches be encrypted.
However, BSkyB claimed that none of the bids it received during the tender process attained the reserve price a match, which had previously been agreed with the European Commission. Therefore, it said, it would not be sub-licensing the rights for the six to eight games.
Murdoch Jnr took over from the company chaired by his father, media baron Rupert Murdoch, last November replacing Tony Ball, despite an outcry from shareholders over fears of nepotism.
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