Bskyb Profit Up 31 Per Cent

The satellite broadcaster said pre-tax profit had risen by 31 per cent to 66 million ($107.5 million) in the three months to September 30.

The company in which Rupert Murdochs News Corp is the leading shareholder, said that total paying subscribers had reached 5.65 million at September 30, a net increase for the quarter of pound 146,000.

The company has performed strongly in the first quarter and has achieved significant growth in both revenue and profits, said BSkyB chief executive Sam Chisholm.

Our increased investment in all areas of programming and the quality and choice we offer our subscribers will maintain our impetus, he added.

 

Operating revenues for the three months to September 30 increased to 266 million, a rise of 24 per cent on a year earlier. Earnings per share were 3.9 pence, 30 per cent up.

BSkyB shares rose 4p to 582-1/2p although analysts said the subscriber growth figures were unexciting and the profits in line with expectations.

BSkyB said in July that it would take a stake of up to 49 per cent in DF1, the German digital television venture launched by Bavarian media mogul Leo Kirch. BSkyB said on Friday it was considering investments in additional German Pay TV channels.

DF1 has made a slow start but the German pay television market is expected to expand rapidly in coming years.

BSkyB said it would show its second pay-per-view event on November 9 when Mike Tyson and Evander Holyfield meet in Las Vegas for the WBA heavyweight boxing crown.

BSkyB successfully experimented with pay-per-view when Tyson fought Briton Frank Bruno in March. More than 600,000 homes paid some 10 pounds to see that fight.

BSkyB has said it plans to introduce digital satellite broadcasting into Britain late next year. Pay-per-view sports events and movies are likely to be one of the prime sources of income from the extra channels provided by digital.

Niche channels Sky Scottish and The Computer Channel were launched on Friday, bringing the total number of channels available on Sky Television to over forty.

However, Fridays planned launch of WBTV-The Warner Channel was postponed at the 11th hour on Thursday evening.

The Warner Channel, a mixture of Bugs Bunny cartoons and vintage movies, was apparently a victim of the legal battle being fought in the U S between Murdoch and the combined might of CNN founder Ted Turner and Time Warner.

That clash of the titans centres on whether Time Warner, the second largest US cable operator, will carry News Corps 24-hour Fox News Service in New York City. Fox is a major rival to CNN, now part of Time Warner following a recent merger.