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British Sky Broadcasting discusses “good growth”

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The British Sky Broadcasting Group has discussed what it calls “good growth” in its third quarter results for 2013 conference call. Chief executive officer and executive director Jeremy Darroch led the discussion following release of the company’s results statement. He looked at the key themes of the figures and highlighted some of the notable points. British Sky Broadcasting Group has delivered another quarter of strong performance, he said. Some 715,000 paid-for subscription products were added over the three months, and “good growth” was seen across the board. This has helped to drive strong revenue growth, which increased by 8%, operating profit, which was up 13%, and profit before tax, which rose by 12.1%. “Our financial performance has actually accelerated as we've moved through the year,” Mr Darroch commented. Over the first nine months, revenue has grown 6%, operating profit 9% and EPS 16%, he continued. “What that really reflects, I think, is strong demand for our products and our continued focus on operational efficiency,” he explained. “Of course, our overall goal is to keep growing the total volume of our business. And I hope you'll agree that this is a strong set of financial results in what remains a challenging consumer environment.” The group’s financial performance comes from consistently good operation delivery and growth in all product lines, highlighting the way it has sold multiple products, transform the scale of the business and opened up new areas of growth. British Sky Broadcasting is no longer a firm that just sells satellite TV, Mr Darroch went on, and is now much more broad, with a home phone service, NOW TV, Sky Extra and fibre optic broadband internet. The quarter saw the group pass the 30-million paid-for subscription product milestone, which is more than double the number from just five years ago. It is now vital that the approach to growth remains focused on overall product sales, as this is paying dividends. As the product range is increased, customers are signing up for more options. The average number of products for customer is now 2.8, compared to 2.6 a year ago. This broad product growth is now seen as the most valuable opportunity and will remain the firm’s focus going forward. Attracting more customers to Sky has been a particular success, with growth in the third quarter in DTH, NOT TV and stand-alone communications. Customers continue to spend more, although churn was up slightly as pressure on household budgets continues and people actively seek out different deals. For more regular updates on our webpage, visit our News feed

Comments (3 )

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