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BSkyB third-quarter profit falls 6 percent but growth of business delights analysts

BSkyB third-quarter profit falls 6 percent but growth of business delights analysts

British Sky Broadcasting Group reported a 6 percent drop in third-quarter profit on Wednesday but delighted analysts with strong increases in its satellite TV and broadband subscriptions.
BSkyB had the fastest-rising shares in early trading on the London Stock Exchange, up 4.8 percent at 613 pence (euro8.99; US$12.27)
BSkyB reported net profit of 142 million pounds (euro208 million; US$284 million) in the three months ended March 31, compared with 151 million pounds in the comparable period a year earlier.
Revenue gained 8.7 percent to 1.16 billion pounds (euro1.7 billion; US$2.3 billion).
The company added 51,000 net customers in the period, 28 percent better than a year earlier, to a total of 8.48 million.
Sky Broadband subscriptions more than doubled to 553,000, the company said.
"BSkyB has reported third-quarter results which are ahead of our top-end expectations on almost all metrics," Numis Securities said in a research note.
Richard Hunter, head of U.K. equities at Hargreaves Lansdown Stockbrokers, said "the robust increase in revenues and subscribers has shown that the Sky strategy remains firmly on track."
However, Simon Wallis of Collins Stewart was unimpressed.
"Momentum trends remain weak and analyst estimates keep on falling whether it be from a fall in carriage on Sky channels, greater investment cost, higher marketing and gross subscriber addition costs," Wallis said. He recommends investors sell the stock.
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http://www.sky.com


Updated : 2021-06-19 14:39 GMT+08:00