BSkyB Posts Mounting Losses as Subscriber Numbers Grow

25 July 2001

British satellite broadcaster BSkyB – 37.5% owned by NewsCorp – today reported widening losses for the past year, though it had a successful twelve months in terms of attracting subscribers.

For the year to the end of June, BSkyB posted losses of £514.5 million, nearly double the £262.7m shortfall from the previous twelve months. However, over the same period, subscriber numbers rose 940,000 to 5.453m, spurring a 25% rise in revenues to £2.3 billion.

In order to attract customers to its digital services, BSkyB has been giving away set-top boxes for free, fuelling the losses but helping to give Sky Digital a dominant market position.

EBITDA (earnings before interest, taxes, depreciation and amortization) jumped 67% from £134m to £224m, beating analysts’ forecasts. The broadcaster also surpassed its target of £300 average revenue per subscriber by £13, while the churn rate stayed at 10%.

News source: BBC Online Business News (UK)