Earnings: BSkyB Beats Forecasts Despite Heavy Broadband Investment

Despite the worsening economy, BSkyB (NYSE: BSY) is getting more customers to part with more cash. In the year to June, it added 92,000, beating expectations, while customer churn hit a three-year low and the average revenue per customer grew £4 in the quarter to a high of £427. But operating profit fell £14 million over the year to £752 million – attributed to infrastructure investment and, Sky conceded, both the loss of some Premiership games and the loss of ad revenue from its decision to yank its channels from Virgin Media.

Broadband: Sky’s broadband investment continued, ploughing £162 million in to infrastructure for that and telephony, plus another £22 million in to its Easynet ISP. Broadband got 200,000 new subs on a net basis in the last quarter, taking it to 1.62 million users. Only two thirds of them pay for their service, though, as opposed to taking it through a marketed bundle. Sky broadband and SkyTalk pulled £249 million sales but cost £401 million to run, Easynet took £178 million.

VOD: Sky added 1.3 million net new Sky+ customers, up to 3.71 million; half of all new customers in the last three months took Sky+. It’s now knocking £100 off the price of a Sky+ HD box to drive HD VOD take-up. A new HD EPG is planned to create “a foundation for future on-demand enhancements”.

Revenue was up nine percent to £4.95 billion. CEO Jeremy Darroch: