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BSkyB Tops 2.62 Million UK Sky Broadband ISP Subscribers

Posted: 30th Jul, 2010 By: MarkJ
bskyb broadband logoBSkyB ( Sky Broadband ) has released its latest set of quarterly results to 30th June 2010 and revealed that they are now home to 2,624,000 broadband ISP subscribers. That's an increase of +119,000 for Q2, which compares well with Q1's +101,000.

During the quarter (Q2) Sky also added 137,000 telephony customers (+118,000 in Q1) and 214,000 line rental customers (+168,000 in Q1). Similarly the number of Sky's 2.62m broadband customers who are connected to its fully unbundled ( LLU ) platform has grown from 688,000 in Q1 to 883,000 for Q2.

However Sky still has 7.8 million customers who are yet to take all three of their TV, broadband and telephony services. To counter this Sky said that it was putting plans in place to increase the network footprint above its current 74% coverage.

Jeremy Darroch, Sky's Chief Executive, said:

"We’ve had another good quarter to bring our financial year to a strong close. Customers are choosing Sky in ever greater numbers, not just for TV but across our entire product range.

High definition goes from strength to strength, with more than twice as many customers as a year ago. At the same time, customers are choosing broader bundles of services, with one in five now taking all three of TV, broadband and telephony. Overall, customers are taking 45% more additional subscription products than a year ago.

Strong customer demand is increasingly reflected in our financial results, with double-digit growth in each of revenue, operating profit and cash flow. Earnings per share are up 20% to a record 31.1p and we are proposing a further 10% increase in the full year dividend, which has now doubled over the last five years.

Today we’re announcing new plans to bring even more standout content to customers. A multi-year partnership will make Sky the exclusive home of new HBO programming and we’re looking forward to a new slate of original UK comedy on Sky1 HD and the launch of 3D TV to residential customers on 1st October. The recent acquisition of the Living TV Group will help us to broaden our entertainment offering still further in the future."

Sky appears to have had a generally good quarter, which is in no small part due to some of its recent service changes. Broadband speeds of up to 20Mbps are now standard and it's even possible to get the Sky Broadband Unlimited package without a SkyTV subscription for just £10 per month, but you do need to swap your phone calls over to Sky Talk Freetime.

Now for the usual financial mumbo jumbo: Adjusted revenue up 11% to £5,912 million; reported revenue up 10%. Adjusted EBITDA of £1,192 million, up 11%. Adjusted operating profit up 10% to £855 million; reported operating profit up 35% to £1,096 million. Adjusted free cash flow up 23% to £626 million; free cash flow including one-off receipts up 69% to £800 million.
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