Shares in BSkyB rocket on subscriber growth

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The price of shares in BSkyB surged here on Wednesday after the British satellite broadcaster revealed impressive fourth-quarter subscriber growth, dealers said.

BSkyB shares rocketed to 710.50 pence, before closing at 700.00 pence, which marked a large gain of 4.17 percent from Tuesday.

The stock outperformed London's FTSE 100 index of top companies, which ended Wednesday 0.24 percent lower at 6,615.10 points.

BSkyB, led by chief executive James Murdoch, son of US media tycoon R. Murdoch, said in a trading statement that its pay-TV customer base swelled by 90,000 to 8.582 million people in the three months to the end of June 2007.

That was at the upper end of the market expectations of a range between 39,000-98,000 extra subscribers.

James Murdoch said the company continued to pick up disgruntled customers from rival Virgin Media.

"We're adding customers from across the board ... (who are) coming to us from all the established incumbents, be it NTL/Virgin, BT, or A O L/Carphone Warehouse," Murdoch told reporters on a conference call on Wednesday.

Earlier this year, Virgin Media launched legal proceedings in Britain's High Court against BSkyB, accusing the latter of stifling competition.

Virgin said its move was a last resort in a bid to resolve a row with BSkyB that has led to hundreds of thousands of Virgin customers being prevented from viewing acclaimed US programs such as "24" and "Lost."

James Murdoch added Wednesday that he wanted the two companies to resolve their differences, but indicated that an agreement could be reached if Virgin Media accepted a recent takeover approach.

"We'd like to have a more productive relationship with the current guys over there (at Virgin Media) but if it takes somebody new, then so be it," Murdoch said.

Virgin Media, listed on the Nasdaq exchange but with operations mainly in Britain, had revealed earlier this month that a bid for the group was being made but gave no further details.

The New York Times had reported that private equity giant The Carlyle Group had made a bid that could be worth as much as 20 billion dollars including debt.

Source: AFP