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UK ISP Sky Broadband Breaks the 5 Million Subscriber Milestone

Thursday, Oct 17th, 2013 (1:11 pm) - Score 891
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Sky Broadband (BSkyB) has today published its latest quarterly results to 30th September 2013, which saw their consumer broadband subscribers grow by +111,000 during Q3 to total 5,017,000. Naturally this is sharply down from the +519,000 added in Q2 when O2 and BE Broadband’s former fixed line customers were merged into the total.

On top of that Sky added +151,000 Telephony (voice calls) and +161,000 Sky Line Rental customers during Q3, which makes for a total of 4,652,000 and 4,525,000 respectively. Some 36% of their customers also take a triple-play bundle of broadband, TV and telephony (up from 35% in Q2).

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Sky also claims that a record of 642,000 customers connected their Sky+ HD TV boxes to broadband during Q3, which means that the total number of “connected homes” has now reached 3.4 million (up from 1.3m in 2012) and as a result Sky claims to have “the UK’s fastest-growing connected TV service“.

Jeremy Darroch, CEO of BSkyB, said:

We have made a very good start to the year. Strong growth across the board drove a 7% increase in revenues and we added 50% more new subscription products than last year as customers continued to respond to the quality and value we offer. Adjusted operating profit was in line with our expectations as we invest in new services and absorb higher Premier League costs.

We were particularly pleased with the continued strong performance in home communications. Quarterly growth in broadband was up on last year taking us past the 5-million customer milestone. In all, 36% of customers now choose to take all three of TV, broadband and telephony from Sky, over half a million more than last year.

On screen, we enjoyed a fantastic summer of sport with the excitement of the Ashes and the Lions tour followed by our best ever start to the football season. Total viewing to our Sky Sports channels is up almost 15% on last year, including growth of over 40% in viewing through our mobile TV service Sky Go.”

Furthermore Sky notes that 3,504,000 broadband customers now connect via their cheaper fully unbundled / MPF lines (73%) and the remaining ones use either shared unbundled / SMPF (1,322,000) or BT-based (191,000) lines. The operator has also unbundled (LLU) 2,354 telephone exchanges from BT’s control (up from 2,323 in Q2) and as a result their LLU network now services 88% of UK homes.

It’s also interesting to note that reported profit after tax includes a net charge of £11 million from the integration following the O2 / BE Broadband acquisition. Apparently this comprises of “customer migration costs, costs associated with running O2’s network in addition to our own whilst the migration process takes place, and amortisation of acquired intangible assets“.

Overall the Average Revenue Per User (ARPU) per annum fell from £569 in Q2 to £559 now and operating profit declined by -8% from £310m one year ago to £285m now.

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Mark-Jackson
By Mark Jackson
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on X (Twitter), Mastodon, Facebook, BlueSky, Threads.net and .
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