Sky delivered strong growth in profitability in the year
to June 2003, building on the excellent operational performance
of the business.
Sky is now looking forward to delivering increasing financial returns on the considerable investment it has made indigital television.
British Sky Broadcasting Group plc and its subsidiaries ('Sky, the 'Group') operate the leading pay TV broadcasting
service in the United Kingdom ("UK") and the Republic
of Ireland ("Ireland"), deriving revenues from television
broadcasting services and certain ancillary functions
which are provided to both retail and wholesale customers.
Sky's main objective is to build upon its position as
the leading provider of multichannel television services
in the UK and Ireland in order to deliver long-term growth
in shareholder value.
Total revenue for the twelve months ending 30 June 2003
("the year") exceeded £3 billion for the first time, an
increase of 15% over the year to 30 June 2002 ("the comparable
period"). Total operating costs before goodwill and exceptional
items increased by 9% to £2,815 million, generating an
operating profit margin before goodwill and exceptional
items of 12% (2002: 7%). Sky continues to benefit from
strong operational gearing; operating profit before goodwill
and exceptional items increased by 94% over the comparable
period to £371 million. Profit after tax was £190 million,
the Group's first full year of positive earnings since
the launch of Sky digital.
At 30 June 2003, the total number of DTH satellite subscribers
in the UK and Ireland was 6,845,000 representing a net
increase of 744,000 in the year. Sky remains highly confident
of achieving its target of 7 million subscribers by the
end of calendar year 2003.
As a result of the continued growth in the number of DTH
subscribers and the launch of the digital terrestrial
free-to-air service, Freeview, in October 2002, the total
number of UK and Ireland households receiving one or more
of Sky's channels increased by 2.0 million to a record
12.2 million in the year.
DTH churn for the year stands at 9.4%, a reduction of
over one percentage point on the comparable period.
The annualised average revenue per DTH subscriber ("ARPU")
at 30 June 2003 was £366. The increase of 5% over the
comparable period reflected the change in Sky's retail
prices which was effective from 1 January 2003, along
with increased contributions from new products.
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BSkyB Publications