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Earnings: BSkyB Income Down A Quarter On Broadband, ITV, Legal Costs

By Robert Andrews - Wed 06 Feb 2008 01:20 AM PST

BSkyB (NYSE: BSY) committed a full £103 million to its broadband rollout in the second half of 2007 - and saw its customer base grow 260,000 to 1.199 million. The company invested £91 million in Sky Broadband and Sky Talk telephony plus £12 million in the Easynet Enterprise unit - both of which are recorded as operating losses. “Looking to 2009, we expect that the peak of investment in broadband will be behind us.”

Sky clocked up a £343 million impairment charge for the 17.9 percent ITV (LSE: ITV) stake it has to divest and its legal case against EDS, which it accused of failing to deliver a promised customer service system, also brought home a £12 million exception item loss.

Sky+ DVR saw record 16 percent growth to 3.131 million and HD subscribers grew 18 percent to 422,000. Average revenue per customer rose to a record £421. Accounting for those exceptional items, overall operating profit was £295 million - down a troubling 25 percent. Release.

Meanwhile, the Advertising Standards Authority has rejected a complaint from BSkyB and others about a Virgin Media (NSDQ: VMED) ad that criticised copper-wire broadband services. Adjudication here.

Posted in: Broadband, Companies, News Corp, BSkyB, Media, TV, Money, Earnings



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paidContent:UK covers the business of digital media for the U.K. and European markets.

Robert Andrews
U.K. Editor

Staci D. Kramer
Co-Editor

Patrick Smith
Correspondent

Dianne See Morrison
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