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Package deals boost Sky profits | Package deals boost Sky profits |
(40 minutes later) | |
BSkyB profits have increased due to sales of broadband, telephone and TV packages to its existing customers. | BSkyB profits have increased due to sales of broadband, telephone and TV packages to its existing customers. |
The firm reported a 27% rise in pre-tax profit to £597m for the last six months of 2011, compared with the same period in 2010. | The firm reported a 27% rise in pre-tax profit to £597m for the last six months of 2011, compared with the same period in 2010. |
The broadcaster sold 772,000 products in the period, but only 100,000 went to new subscribers. | The broadcaster sold 772,000 products in the period, but only 100,000 went to new subscribers. |
Sky also announced it would create 1,300 new jobs in the UK and Ireland over the next two years. | Sky also announced it would create 1,300 new jobs in the UK and Ireland over the next two years. |
The job plan includes a new service centre in Dublin, which is part of an on-going programme to bring Sky's workforce in-house rather than using other companies to provide customer support. | The job plan includes a new service centre in Dublin, which is part of an on-going programme to bring Sky's workforce in-house rather than using other companies to provide customer support. |
Although Sky said it now makes £544 a year from each of its customers, up £8 from the same period in 2010, the company said it was feeling pressure from the economic gloom. | Although Sky said it now makes £544 a year from each of its customers, up £8 from the same period in 2010, the company said it was feeling pressure from the economic gloom. |
"We expect the environment to remain tough in calendar 2012. No consumer business can be immune to these conditions and we will manage any short-term headwinds as they emerge," said chief executive Jeremy Darroch. | "We expect the environment to remain tough in calendar 2012. No consumer business can be immune to these conditions and we will manage any short-term headwinds as they emerge," said chief executive Jeremy Darroch. |
Analyst reaction to the results has been positive. | Analyst reaction to the results has been positive. |
"We believe Sky has reported strong results today, with churn of under 10% an outstanding achievement given the macro challenges," said Paul Richards at Numis Securities. | "We believe Sky has reported strong results today, with churn of under 10% an outstanding achievement given the macro challenges," said Paul Richards at Numis Securities. |
"The new wholesale fibre offering is attractively priced while we see opportunities for the internet-based pay TV service." | "The new wholesale fibre offering is attractively priced while we see opportunities for the internet-based pay TV service." |
Shares in the company rose 3.8% in London after the results were announced. | |
New channels | |
The broadcaster pointed to its plans to introduce a new channel for Formula 1 coverage as a potential highlight for 2012. | The broadcaster pointed to its plans to introduce a new channel for Formula 1 coverage as a potential highlight for 2012. |
The broadcaster agreed to split Formula 1 coverage with the BBC last year. | The broadcaster agreed to split Formula 1 coverage with the BBC last year. |
Sky is also planning to introduce a new internet-based pay TV service in the first half of 2012. | |
The internet channel will run on the back of existing services and Sky says there will be no need for significant infrastructure investment. | |
Sky is aiming to provide its programmes to users of computers, tablets or smartphones who do not subscribe to its satellite packages. | |
The service will start by offering films, but the firm plan to expand it to include other entertainment and sport. | |
The announcement comes in the wake of last week's launch of US video streaming service Netflix in the UK. | |
The US-based service launched in 2007 and has more than 20 million online subscribers in 47 countries. | |
Research in 2011 suggested that Netflix was the single biggest driver of internet traffic in the US. |