BSkyB results for the 12 months ended 30 June 2008

Thursday, July 31st, 2008
BSkyB logo

In the three months to 30 June 2008 British Sky Broadcasting (LSE:BSY) net customer additions were 92,000, bringing the total customer base to 8.98 million.

Gross product sales for the quarter again exceeded 1.2 million as our product range continues to appeal to new and existing customers. During the quarter 55% of Sky+ additions, 30% of Sky+ HD additions and 49% of broadband additions were new to Sky. ARPU continues to benefit from the growth in new product penetration and increased by £15 year on year to £427.

Sky+ increased by 321,000, the highest level of fourth quarter additions since launch, to reach 3.7 million households or 41% of our customer base. Sky+ was supported by a marketing campaign during the quarter designed to use the power of advocacy to broaden the appeal of Sky and to communicate benefits of the product. The campaign was the first of its kind from Sky and has seen high levels of recognition from audiences of all ages.

Penetration of Multiroom and Sky+ HD continued to grow. Multiroom households increased by 33,000 to 1.6 million, or 18% of the base. Despite maintaining the retail price of Sky+ HD hardware at £249, Sky+ HD households increased by a further 33,000 to around half a million customers. As high definition becomes increasingly established as the new benchmark for video services, we expect the superior range and quality of content offered by Sky+ HD to be a key driver of demand from new customers. On 1 July 2008, we equalised pricing of Sky+ and Sky+ HD boxes at £150. We will continue to expand our Sky+ HD channel offering and in September we are enhancing the customer experience with the launch of a new Sky+ HD electronic programme guide. This takes advantage of the latest set-top box technology and creates a foundation for future ondemand enhancements.

We continue to make good progress in broadband, adding a further 200,000 Sky Broadband customers in the fourth quarter. In just under two years we have added over 1.6 million broadband customers.

Customer Metrics

'000s                  30-Jun-08  31-Mar-08  Net additions
                       ---------  ---------  -------------
Total customers(1)(2)      8,980      8,888             92
Additional products:
 Sky+(3)                   3,714      3,393            321
 Multiroom(4)              1,604      1,571             33
 Sky+ HD                     498        465             33
 Broadband                 1,628      1,428            200
 Telephony                 1,241      1,095            146
Other KPI's:
 Churn                      9.8%      10.5%
 ARPU                       £427       £424

1. DTH subscribers include only primary subscriptions to Sky (no additional Sky+ or Multiroom subscriptions are counted). This does not include customers taking Sky’s Freesat offering or churned customers viewing free-to-air channels
2. DTH subscribers include subscribers taking Sky packages via DSL through Tiscali TV
3. Sky+ includes Sky+ HD households
4. Multiroom includes households subscribing to more than one digibox. (No additional units are counted for the second or any subsequent Multiroom subscriptions within one household)

More: Earnings Release