Year results summarised


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Aug 10, 2001
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Following the price increase thread I thought i'd provide details on this years declared profits for Bskyb.

Bskyb's 2007/2008 operating profit was down 11% to £724m. The company said the fall in profits was caused by the loss of advertising revenue, since BSkyB failed to reach a deal with ****** Media about carrying its basic Sky channels on cable, and the higher cost of its new contract to show FA Premiership League football games. The stand-off with ****** Media over the carriage of basic channels, including Sky One, remained unresolved with a knock-on effect to the company's wholesale subscription and advertising operations as a result. Wholesale subscription revenue fell by 13% year on year to £181m, down from £208m; and advertising revenue fell 7% year on year to £328m from £352m the previous year.

Pre-tax profits fell 92% to 60 million pounds, down from 724 million pounds in 2006/2007 after the value of its stake in ITV plummeted by £616m. (Very big loss to stop ****** expansion)

[At this point you can equate that the battle between the giants has resulted in at least £667 million less profit for Bskyb this year (not including legal costs)]

BSkyB declared it had made a loss after tax of 127 million pounds (161 million euros, 251 million dollars) in the 12 months to June, compared with a net profit of 499 million pounds for the previous financial year.

[At this point you can understand the need for subscription rises]

However, its certainly not all bad news-
Operational performance for the quarter: On track, churn reduces to 9.8%
- Net customer growth in the quarter of 92,000 to 8.980 million
- New customer additions of 310,000 (310,000 less 218,000 leaving = +92,000)
- ARPU increases to £427 (See below)

Total gross product sales of over 1.2 million in the fourth quarter included:
- Sky+ net growth of 321,000 to 3.714 million
- Multiroom net growth of 33,000 to 1.604 million
- Sky+ HD net growth of 33,000 to 498,000
- Broadband net growth of 200,000 to 1.628 million
- Sky Talk net growth of 146,000 to 1.241 million
Financial performance for the year: Strong top-line growth, well positioned for 2009
* 11% growth in retail subscription revenue to £3,769 million
* Group revenue of £4,952 million up 9% on the prior year
* Adjusted operating profit of £752 million
* Operating profit of £724 million included £162 million of investment in broadband and telephony, £22 million of investment in Easynet and exceptional charges of £28 million (this will be mostly special legal costs, i believe)
* Adjusted EBITDA of £998 million
* Adjusted earnings per share of 25.1 pence4; reported loss per share of 7.3 pence (2007: 28.4 pence)
* 8% increase in full-year dividend to 16.75 pence per share

ARPU ~ Average revenue per unit(customer/account)-
Total ARPU £427
Broadband+Phone ARPU £25
TV ARPU £402
= average £33.50 plus VAT per customer per month for TV subscription.