{"id":5293,"date":"2014-01-30T07:54:14","date_gmt":"2014-01-30T07:54:14","guid":{"rendered":"http:\/\/www.ispreview.co.uk\/?p=5293"},"modified":"2014-01-30T08:00:18","modified_gmt":"2014-01-30T08:00:18","slug":"sky-broadband-uk-grows-5-127-million-subscribers-despite-bt-pressure","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2014\/01\/sky-broadband-uk-grows-5-127-million-subscribers-despite-bt-pressure.html","title":{"rendered":"Sky Broadband UK Grows to 5.127 Million Subscribers Despite BT Pressure"},"content":{"rendered":"<p>It&#8217;s been a difficult few months for BSkyB (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/bskyb\" rel=\"nofollow\" target=\"_blank\">Sky Broadband<\/a>) but the operators latest Q4 2013 results have revealed that their broadband ISP subscriber base continued to grow by +110,000 in Q4 to total 5,127,000 (stable from +111k added in Q3). Churn also fell and ARPU grew but their unbundled (LLU) network expansion stopped.<\/p>\n<p><!--more--><\/p>\n<p>Sky is perceived to have come under significant pressure from the launch of <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/britishtelecom\" rel=\"nofollow\" target=\"_blank\">BT<\/a>&#8217;s rival free <strong>BTSport TV<\/strong> service and yet they\u2019ve still continued to increase some of their underlying prices (e.g. line rental), even going so far as to withdraw the not insignificant <strong>Line Rental Saver<\/strong> discount (<a href=\"http:\/\/www.ispreview.co.uk\/index.php\/2014\/01\/uk-isp-sky-broadband-stops-offering-line-rental-saver-discount.html\" target=\"_blank\">here<\/a>). But so far none of these changes appear to be causing them too much pain.. yet.<\/p>\n<p>In fact Sky managed to produce customer growth across the board during Q4 2013. The operator added +151k <strong>Line Rental<\/strong> customers in Q3 to total 4,676,000 (down slightly from +161k in Q3) and +140k <strong>Telephony<\/strong> (voice) subscribers for a total of 4,792,000 (down slightly from +151k in Q3). But sadly they still refuse to publish how many superfast <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/bskyb\" rel=\"nofollow\" target=\"_blank\">Sky Broadband<\/a> Fibre (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/fttc\">FTTC<\/a>) subscribers they have.<\/p>\n<p>Sky also notes that 3,659,000 of their broadband and phone subscribers now connect via their cheaper fully LLU unbundled (MPF) lines, which represent 74% of their network (up from 73% in Q3). The remaining customers use their shared unbundled (SMPF) lines (1,262,000) or <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/britishtelecom\" rel=\"nofollow\" target=\"_blank\">BT<\/a>-based services (206,000).<\/p>\n<p>It&#8217;s especially interesting to note that the operator has now managed to unbundle <strong>2,355 telephone exchanges<\/strong> from <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/britishtelecom\" rel=\"nofollow\" target=\"_blank\">BT<\/a>\u2019s control, which represents an increase of just 1 exchange over Q3 (i.e. <strong>LLU network expansion appears to have stopped<\/strong>). Sky&#8217;s unbundled network is now capable of serving 90% of UK homes, which meets their original goal from a couple of years back.<\/p>\n<blockquote class=\"bq1\"><p><strong>Jeremy Darroch, CEO of BSkyB, said:<\/strong><\/p>\n<p>&#8220;<em>We had a very good first six months of the year as we reaped the benefits of our broader-based approach to growth. In a consumer environment that remains challenging, customers continued to choose to take Sky products in ever greater numbers in the run-up to Christmas, with Q2 growth up by over 40% on last year. In the last 12 months, we have added 3.8 million paid-for subscription products, the fastest rate of annual growth in three years.<\/em><\/p>\n<p><em>Our financial performance was strong in the first half and we remain on track for the full year. Good operating momentum led to an 8% increase in revenues for the period, excluding revenues from the discontinued retailing of ESPN. We are moving through a year of investment in which we are absorbing the one-off step up in Premier League costs well, with adjusted EBITDA flat thanks to a continued focus on operating efficiency. The 9% increase in the interim dividend to 12.0 pence, the tenth consecutive year of growth, reflects our confidence in the strength of our business and the progress we are making<\/em>.&#8221;<\/p><\/blockquote>\n<p>On the financial front Sky saw its quarterly <strong>Churn<\/strong> fall by -0.2% (total) and their <strong>ARPU<\/strong> grow by an impressive +\u00a311 (annual total \u00a3570). Elsewhere total half-year revenue climbed to \u00a33,751m (+7.6%) but operating profit declined by -8% to \u00a3595m.<\/p>\n<p>Suffice to say that Q4 could have been much worse but Sky seem to be holding steady, although it&#8217;s still early days for BT&#8217;s venture into Sport content and Sky knows that it might have to adapt how it does business and this is one of the reasons why they appear to be mooting a collaboration with <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/vodafoneuk\" rel=\"nofollow\" target=\"_blank\">Vodafone<\/a> (<a href=\"http:\/\/www.ispreview.co.uk\/index.php\/2014\/01\/sky-vodafone-possible-merger-joint-collaboration-talks.html\" target=\"_blank\">here<\/a>). But for now the pressure is\u00a0back on BT to show that their sporting gamble can pay its way to success.<\/p>\n<p>As a side note, included within Sky&#8217;s <strong>direct networks costs<\/strong> (up 16% to \u00a3404 million annually) is a credit of \u00a332 million in relation to a credit note received from BT following an <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/ofcom\" target=\"_blank\">Ofcom<\/a> determination which requires BT to repay monies to Sky for overcharged-for Ethernet services (backhaul) between 2006\/07 and 2009\/10. Sky, BT and others have appealed <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/ofcom\" target=\"_blank\">Ofcom<\/a>\u2019s determination in the CAT. On top of that the costs also include a one-off step-up as Sky integrate the <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/o2uk\" rel=\"nofollow\" target=\"_blank\">O2<\/a> consumer fixed line and broadband business.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It&#8217;s been a difficult few months for BSkyB (Sky Broadband) but the operators latest Q4 2013 results have revealed that their broadband ISP subscriber base continued to grow by +110,000 in Q4 to total 5,127,000 (stable from +111k added in Q3). Churn also fell and ARPU grew but their unbundled (LLU) network expansion stopped.<\/p>\n","protected":false},"author":1,"featured_media":4323,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[472,66,34],"class_list":["post-5293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-business","tag-sky-broadband","tag-statistics"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Sky Broadband UK Grows to 5.127 Million Subscribers Despite BT Pressure - ISPreview UK<\/title>\n<meta name=\"description\" content=\"It&#039;s been a difficult few months for BSkyB (Sky Broadband) but the operators latest Q4 2013 results have revealed that their broadband ISP subscriber base\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2014\/01\/sky-broadband-uk-grows-5-127-million-subscribers-despite-bt-pressure.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sky Broadband UK Grows to 5.127 Million Subscribers Despite BT Pressure - 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