Sky still on track as revenue exceeds £4bn

[BGonaSTICK]

The number of households with BSkyB's digital TV recorder, Sky+, increased by 75% in the year to 30 June 2006 - a 19% penetration of total direct-to-home (DTH) subscribers as the UK's dominant pay-television provider saw revenue pass the £4bn mark.

DTH subscribers increased by 389,000 (with 77,000 in the final quarter), taking Sky's UK and Ireland base to nearly 8.18m. Meanwhile, multi-room households (those taking the company's additional set-top box service) grew by 62% to 1.047m, accounting for 13% of the broadcaster's total customers.

In a statement to the City, Sky said that it remains on track to achieve more than 10m DTH subscribers by 2010, and the company is also on course to see a 30% multi-room penetration and over 25% Sky+ penetration in the next four years.

Sky's revenue increased by 8% to £4.15bn in the full year to 30 June 2006, with operating profit up 7% to £877m and pre-tax profit up 1% to £798m.

However, annualised average revenue per DTH subscriber for the final quarter of the year was £388, down £4 from the previous quarter, which the broadcaster said reflected "a slight seasonal deterioration in the mix of subscription packages".

The company added that it expects that "the full benefit of the recently communicated changes to UK and Ireland retail pricing, which become effective on 1 September 2006, to be realised in the second quarter of the current financial year".

DTH churn for the fourth quarter (annualised) was 10.6%, taking churn for the year 11.1% - in line with previous company guidance.

The latest results follow the acquisition of online publisher Mykindaplace, the launch of Sky HD - the high-definition television service that has so far received 90,000 bookings - and the securing of four packages of live Premiership football rights for three years.

Chief executive James Murdoch, who this month announced the launch of Sky Broadband following the acquisition of Easynet Group, said: "Our industry is changing faster than ever before - and for Sky, 2006 has been an important and exciting year".

He continued: "The business and the team have performed well, delivering good levels of customer growth in line with our plans, and strong growth in both revenues and profitability".

Murdoch added: "We have a clear vision for the future growth and direction of our business, and we feel encouraged by the strong demand our customers show for new entertainment and communication services.

"With a continued focus on providing more choice, flexibility and control, we feel confident as we look ahead to the substantial opportunity this market holds".