BSkyB Sees Profits Fall As Broadband Investments Take Bite
BSkyB saw a double-digit increase in overall revenues for the year that closed June 30, the company announced July 27.
BSkyB posted revenues 4.6 billion British pounds ($9.3 billion), an increase of 10 percent compared to 2006. However, profits of 815 million pounds ($1.7 billion) in 2007 were down slightly from earnings of 877 million pounds ($1.8 billion) in 2006. BSKyB blamed the decline on a major investment in developing a residential broadband business. Residential broadband operating losses for the year were 169 million pounds ($346.5 million), in line BSkyB’s expectations.
BSkyB added 1.4 million subscribers during the year to bring its total base to 8.5 million in the United Kingdom and Ireland. The company also has nearly 300,000 high-definition customers and a nearly 30 percent penetration rate for its personal video recorder service, Sky+.