BSkyB continues strong broadband growth

BSkyB has reported an 11 percent rise in revenues in Q1, but operating costs hit profits.

Group revenue increased by 11 percent to £1.185 billion and it reported strong growth in additional products, particularly Sky+ and Sky Broadband.

However, operating profit slipped to £143 million compared to £180 million in the same period last year.  This was in part due to an investment of £51 million in its Broadband and Talk ventures, along with £6 million in Easynet, who were bought to provide the broadband network infrastructure.

Earlier in the week BSkyB also announced it passed the 1 million mark in its broadband customer base, some 14 months after its launch.

James Murdoch, Chief Executive of BSkyB, said, “We launched Sky Broadband in the belief that customers would respond to quality and value, and they have. After just 14 months over one million customers have chosen Sky Broadband, and growth continues.”

“As expected, our financial performance reflected strong product sales, our investment in high quality programming and a full quarter of investment in Sky Broadband and Talk.”

Manoj Solanki of SeekBroadband.com, commented, “Sky is also set to launch a standalone broadband product called Picnic that does not require a Sky TV subscription and this will add additional pressure to rivals such as Virgin Media, Carphone Warehouse and Tiscali.  Sky’s broadband uptake figures over the past few months will certainly give them something to think about.”

Related links

• Full Sky Q1 results
• Sky broadband signs up over 1 million customers
• Sky broadband offers