GROSS MARGIN ROSE BY FOUR PERCENTAGE POINTS TO 61% DUE TO THE OPERATING LEVERAGE OF STRONG
REVENUE GROWTH AND ABSOLUTE REDUCTIONS IN PROGRAMMING COSTS.
Jeremy Darroch
Chief Financial Officer
OPERATING PROFIT INCREASED BY 7% TO £877 MILLION.
Sky reached a number of significant operational milestones this year whilst preparing the business for the launch of broadband services and delivering a very strong financial
performance. Revenue increased by 8% to over £4.1 billion generating record cash flow from operations of over £1 billion.
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Operating reviewFinancial review
The Annual Review is a summary report on the full year to 30 June 2006, intended
for the investor not needing the full detail of the Annual Report.
As a summary report, the Annual Review does not contain sufficient information
to allow as full an understanding of the results and state of affairs of the Group as is provided by the full Annual Report.
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