Sky increases DTH subscriber base & reduces churn

[BGonaSTICK]

BSkyB added 90,000 net new direct-to-home subscribers in the three months to the end of June, a 17% year-on-year increase to 8.58m. The UK and Ireland pay-TV provider reduced annualised churn—the proportion of subscribers cancelling contracts—from 13.7% at the end of Q1 to 12.1%, and increased average revenues per subscriber by £21 on the year to £412.

The number of homes taking Sky's digital TV recorder service, Sky+, increased by 207,000 to 2.37m, 28% of its total subscriber base. Multi-room households rose by 46,000 to 1.34m while the number of subscribers to Sky's high-definition television service, Sky HD, rose by 48,000 to 292,000.

In a trading statement, Sky said its broadband customer base rose by 259,000 to 716,000 while customers of Sky's telephony service, Sky Talk, reached 526,000. Sky's broadband and telephony network is now powered via 1,150 unbundled telephone exchanges, giving it 70% coverage of UK households, six months ahead of schedule.

Hailing Sky's Q2 performance, CEO James Murdoch said: "Our transformation continues to gather pace. Today we are adding new customers at the fastest rate since [Sky's] analogue switch-off; we are adding more broadband customers than any other provider; and we are the only major residential telephony provider growing its customer base.

"Looking forward, we will continue to grow our share of an enlarged sector opportunity by delivering a superior customer experience, investing in the products and services customers want and by continuing to offer exceptional value to all our customers."

Meanwhile Sky is increasing the price it charges pubs and clubs to show Premiership football by an average of 11% from September 1. Sky froze the price for pubs and clubs buying its new football package until June 22, so the increase will only apply to those signing up after September 1.