On Thursday British Sky Broadcasting Group Plc reported growth, both in profit and in customer demand in Q1, as more consumers signed up to download or view digital media onto their mobile devices.
Britains biggest paid-TV service reported revenue of £1.926 billion in the three months ended September 30, a 6% increase compared to last years £1.817 billion. Operating profit edged up to £316 million, an 11% gain compared year-to-year.
BSkyB expanded its customer base by 51 000 new retail customers and reached 11.5 million in total. It also added 760 000 new paid-for subscription products in the quarter, an 8% rise compared to last quarter, including a record of 309 000 people who signed up for the Sky Go Extra, which lets customers download or stream video content on their Internet connected devices.
“We have made a strong start to the year. After a year of investment, we are seeing the returns coming through with good top-line growth” said Jeremy Darroch, Chief Executive Officer.
The company, which is about 39% owned by Rupert Murdoch’s 21st Century Fox Inc, reported it has received the approval of shareholders and regulators and is on track with the acquisitions of Fox’s Sky Italia and a majority stake in Sky Deutschland. The deal includes BSkyB to buy 21st Century Foxs 57.4% stake in the German operator for $4.72 billion in cash, or $8.62 a share, and under market rules offered the same price to the company’s remaining minority shareholders. In total, both purchases are worth just over $9 million.
Mr. Darroch commented on the offer: “I wouldnt be surprised if we get a lot more take-up and I think the volatility we are seeing is probably making people reflect on that,” he said in an interview on Thursday. “We are very happy at 57 per cent and we think we can do all the things we need to do in the business with that, and we’ll see how many trade in.” he added.
After the deal is closed BSkyB will become a media behemoth on the European market, providing cable and satellite television to 20 million subscribers in five different countries.
British Sky Broadcasting Group Plc lost 2.72% on Wednesday in London and fell 1.05% by 13:59 GMT on Thursday to trade at GBX849.50, marking a 3.25% one-year decrease. The company is valued at GBP14.76 billion. According to the Financial Times, The 17 analysts offering 12-month price targets for British Sky Broadcasting Group PLC have a median target of GBX965.00, with a high estimate of GBX1,170 and a low estimate of GBX610.00. The median estimate represents a 12.41% increase from the last close of GBX858.50.
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