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BSkyB's profits dented by costly football rights | BSkyB's profits dented by costly football rights |
(about 1 hour later) | |
BSkyB reported pre-tax profits fell 9.2% from £610m to £554m for the second half of 2013, partly due to a new £760m deal to show Premier League football. | BSkyB reported pre-tax profits fell 9.2% from £610m to £554m for the second half of 2013, partly due to a new £760m deal to show Premier League football. |
A continuing payment of £70m on BSkyB's "connected TV services", where TVs are linked to the internet and mobile phones, also hit profits, it said. | A continuing 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. | BSkyB lost the rights to show Champions League and Europa League matches to BT Sport in November 2013. |
However, shares in the broadcaster rose 6% as the results beat forecasts ,before falling back to stand 3% higher. | |
News of strong growth in its on-demand and mobile use, and an increase in the dividend, also helped push the shares higher. | News of strong growth in its on-demand and mobile use, and an increase in the dividend, also helped push the shares higher. |
BT's 'dark shadow' | BT's 'dark shadow' |
The company said it was "on track with our plans for the year". | The company said it was "on track with our plans for the year". |
Toby Syfret, TV analyst at Enders Analysis, said the presence of BT in the market meant BSkyB had to pay more for the Premier League deal. | Toby Syfret, TV analyst at Enders Analysis, said the presence of BT in the market meant BSkyB had to pay more for the Premier League deal. |
But he said the hit to profits from the Premier League payment was a one-off. | But he said the hit to profits from the Premier League payment was a one-off. |
Mr Syfret added: "There is a lot of innovation [at BSkyB]. The message is therefore clearly coming across that we are far from reaching our limits." | Mr Syfret added: "There is a lot of innovation [at BSkyB]. The message is therefore clearly coming across that we are far from reaching our limits." |
He said connectivity was opening up "more revenue opportunities", but warned about the "dark shadow" of BT. | He said connectivity was opening up "more revenue opportunities", but warned about the "dark shadow" of BT. |
'Many strands' | 'Many strands' |
Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said analysts had concentrated on the "threat of BT, both in the sports offering and also its increasing strength in broadband". | Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said analysts had concentrated on 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. | 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. | "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. | 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 [second quarter] 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 [second quarter] 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". | He said BSkyB would work with its new US partner, HBO, to co-produce a "major new cinematic drama series". |