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BSkyB's interim profits for 2013 down 9% | BSkyB's interim profits for 2013 down 9% |
(about 3 hours later) | |
BSkyB has reported a 9.2% fall in pre-tax profits from £610m to £554m for the second half of 2013. | BSkyB has reported a 9.2% fall in pre-tax profits from £610m to £554m for the second half of 2013. |
The broadcaster said that the dent in profits was partly due to a new £760m deal to show Premier League football. | |
An ongoing payment of £70m on BSkyB's "connected TV services", where TVs are linked to the internet and mobile phones, also hit profits, it said. | |
BSkyB lost the rights to show Champions League and Europa League matches to BT Sport in November 2013. | |
The fall in BSkyB's profits comes as competition from BT and TalkTalk intensifies. | |
But the company said it was "on track with our plans for the year". | |
Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said: "Analysts have tended to concentrate on one aspect of the business, namely the threat of BT both in the sports offering and also its increasing strength in broadband." | |
But he said that since BSkyB had "so many strands" of business, it had enough money elsewhere to pick up the slack. | |
"It is, I believe, trying to rely less heavily on the football package part of its business," he said. | |
BSkyB said it added 42% more subscriptions in the three months to 31 December than the same period a year earlier. | |
Jeremy Darroch, chief executive at BSkyB, said: "In a consumer environment that remains challenging, customers continued to take Sky products in ever-greater numbers in the run-up to Christmas, with Q2 growth up by over 40% on last year." | Jeremy Darroch, chief executive at BSkyB, said: "In a consumer environment that remains challenging, customers continued to take Sky products in ever-greater numbers in the run-up to Christmas, with Q2 growth up by over 40% on last year." |
He said BSkyB would work with its new US partner, HBO, to co-produce a "major new cinematic drama series". |