BSkyB reports 16% revenue bump

BSkyB has demonstrated why Rupert Murdoch’s News Corporation was trying to take over the company by posting a 16% increase in full-year revenue.

Revenue for the 12 months to 30 June was £6.6bn, the company says, up from £5.7bn last year. Operating profit increased 23% to £1.1bn.

Gains were driven by a 426,000 increase in the broadcaster’s customer base in the year to a total of 10.3 million subscribers.

Average revenue gained from each customer grew £31 to £539 driven by a 37% increase in the number of customers taking combined TV, broadband and telephone packages.

Advertising revenue grew by “double digits”, the company adds.

The better than expected increase in revenue highlights the appeal of BSkyB to News Corp.

The Murdoch-led company had been trying to takeover the 61% of Sky it did not already own but was forced to withdraw its bid following the phone hacking scandal that closed its 168-year-old Sunday tabloid News of the World earlier this month.

The furore over journalistic techniques used at News Corp’s British newspaper division News International led to calls for James Murdoch, chairman of News Int, to step down from the same role he holds at BSkyB.

Yesterday (28 July), however, BSkyB’s board voted unanimously to keep James as its chairman.

Jeremy Darroch, chief executive of BSkyB, says that the company is well positioned as it enters the new financial year.

He adds: “While we expect the environment to remain challenging, we will continue to pursue a balanced approach to growth and returns.”

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