Up and Coming: BSkyB reports big jump in profits

Thursday, January 27, 2011

BSkyB reports big jump in profits

News Corp currently holds a 39% stake in BSkyB

BSkyB has reported a 26% jump in half-year pre-tax profit as its number of customers moved above 10 million.

Pre-tax profits at the broadcaster rose to £467m in the last six months of 2010, with revenues up 15% to £3.2bn.

Earlier this week, Culture Secretary Jeremy Hunt said he intended to refer a bid by News Corporation for BSkyB to the Competition Commission.

But he has given News Corp extra time to address concerns he has regarding "potential threats to media plurality".

In the past few days, BSkyB has sacked football pundit Andy Gray and seen presenter Richard Keys resign following a row over sexist comments.

BSkyB said increased demand for high definition (HD) television services - up by 68% on a year ago - had boosted results.

And more customers were also opting to buy broadband internet access and phone services from the firm, as well as television, adding to "a half year of outstanding performance", said chief executive Jeremy Darroch.

The firm added that being "more broadly based", offering communication services as well as pay televison, would be key to future growth.

However, it said it was taking a "cautious view" for 2011, as the impact of government spending cuts fed through to consumers.

News Corp already owns a 39% stake in BSkyB and is trying to buy the rest of the business. It also owns four UK newspapers - the Sun, the News of the World, the Times and the Sunday Times.

News Corp made an approach in June to take full control of BSkyB, but Business Secretary Vince Cable stepped in to refer the deal to Ofcom on public interest grounds.

However, the responsibility for a final ruling on the proposed merger has since passed to Mr Hunt, after Mr Cable was recorded by undercover journalists saying he had "declared war" on News Corp's owner, Rupert Murdoch.

Richard Keys resigned as a Sky presenter on Wednesday following his comments about female referee Sian Massey - and after the release of further damaging, unbroadcasted, material.

Pundit Andy Gray, 55, had already been dismissed by the broadcaster after further allegations of sexist behaviour from the former striker came to light.

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