BSkyB Results for the twelve months ended 30 June 2007

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Strong operational and financial performance; 27% increase in the full year dividend.

More customers are choosing more of Sky’s products than ever before.

• Annual new customer additions 1.446 million, growth of 13% on the prior year

• Annual net customer growth of 406,000 to 8.582 million

• Record Sky+ growth of 821,000 to 2.374 million, 28% penetration of the base

• HD customers of 292,000, Sky’s fastest take-up for an additional TV product

• Sky Broadband customers of 716,000

• Record Sky Talk customer growth of 342,000 to 526,000

• 1,150 exchanges unbundled, 70% coverage of UK households

• Strong top-line growth; profits reflect investment for future growth

• Revenue increased by 10% to £4,551 million

• Underlying gross margin of 63%, up from 61% in the prior year1

• EBITDA of £1,007 million despite broadband and telephony investment

• Operating profit of £815 million, including losses of £169 million from Residential Broadband and £23 million from Easynet Enterprise, and an exceptional gain of £49 million2

• Underlying operating profit increased to £958 million, annual growth of 6%

• Basic EPS of 28.4p (2006: 30.2p) and adjusted EPS of 26.3p (2006: 30.7p)3

• A proposed final dividend of 8.9 pence generating a full year dividend of 15.5 pence, a 27% increase

James Murdoch, Chief Executive said:

“This year has been one of enormous importance and change for us, with the launch of our broadband and talk services transforming our business and our future prospects fundamentally. This expanded product range is now attracting new customers to Sky at a very healthy pace, as well as deepening our relationships with existing customers.

“The team has delivered a strong financial performance whilst building the foundations for future growth. Continued successful execution of our strategy gives us confidence that we are well placed to capitalise on the significant opportunities available to us, and the proposed 27% increase in the full year dividend is a mark of that confidence.”

Source: BSkyB