Profits fall to $998 million
LONDON — The profits of Europe’s biggest paybox, BSkyB, have fallen due to investment in broadband and telephone land lines.
Net profits for the year to June were £499 million ($998 million), compared with $1.102 billion a year ago, but sales grew by 10% to $9.1 billion.
Earlier this month, the satcaster announced that subscriptions had outpaced analysts’ forecasts. In the past year, BSkyB added 406,000 new subscribers bringing the total to 8.58 million.
In the results, BSkyB revealed it had saved $50 million on its movie acquisition deals. BSkyB spent $570 million with the studios, the “lowest absolute cost for seven years,” CEO James Murdoch said.
Murdoch has had more than his fair share of challenges to wrestle with in the past year, with the web locked in a row over channel distribution fees with U.K. rival Virgin Media and the subject of several regulatory inquiries.
“This year has been one of enormous importance and change for us,” Murdoch said, “with the launch of our broadband and talk services transforming our business and our future prospects fundamentally.”