FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the month of November 2007
2 November 2007
BRITISH SKY BROADCASTING GROUP PLC
(Name of Registrant)
Grant Way, Isleworth, Middlesex, TW7 5QD England
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): Not Applicable
EXHIBIT INDEX
Exhibit
EXHIBIT NO. 1 Press release of British Sky Broadcasting Group plc
announcing 1st Quarter Results released on
2 November 2007
BRITISH SKY BROADCASTING GROUP PLC
Interim Management Statement and Results for the three months ended 30
September 2007
Strong demand continues
o New customer additions of 327,000 in the quarter
o Net customer growth of 83,000 to 8.665 million
o Strong growth in additional products from the previous quarter
- Record Sky+ growth of 323,000 to 2.697 million, up 14%
- HD growth of 66,000 to 358,000, up 23%
- Multiroom growth of 68,000 to 1.411 million, up 5%
- Sky Broadband growth of 223,000 to 939,000, up 31%
- Sky Talk growth of 153,000 to 679,000, up 29%
o Overall product sales of over 1.2 million, up 86% on the comparable period
o Sky Broadband passed one million customers during October
Strong top-line growth; profits reflect investment for future growth
o Group revenue increased by 11% on the comparable period to GBP1,185 million
o Gross margin increased by three percentage points on the comparable period
to 66%
o Adjusted operating profit of GBP150 million reflects very strong Sky+
customer growth
o Reported operating profit of GBP143 million including a full first
quarter's investment of GBP51 million in Sky Broadband and Talk and GBP6
million in Easynet Enterprise and a GBP7 million exceptional charge
o Basic EPS of 4.8p (2007: 6.5p); adjusted EPS of 5.0p (2007: 6.4p)(1)
-----------------------------
(1) Comparative period adjusted earnings per share have been revised to take
account of GBP3 million EDS litigation costs which were not disclosed as an
exceptional item in the comparable period
James Murdoch, Chief Executive said:
"We've seen continued good demand from customers for our entire product range,
with over one million product sales for the fourth consecutive quarter. Sky+ has
been exceptional, growing faster than ever before - and is now enjoyed by almost
one third of Sky TV customers.
"We launched Sky Broadband in the belief that customers would respond to quality
and value, and they have. After just 14 months over one million customers have
chosen Sky Broadband, and growth continues.
"As expected, our financial performance reflected strong product sales, our
investment in high quality programming and a full quarter of investment in Sky
Broadband and Talk. We expect that performance for the full year will be in line
with our plans."
Enquiries:
Analysts/Investors:
Andrew Griffith Tel: 020 7705 3118
Robert Kingston Tel: 020 7705 3726
E-mail: investor-relations@bskyb.com
Press:
Matthew Anderson Tel: 020 7705 3267
Robert Fraser Tel: 020 7705 3036
E-mail: corporate.communications@bskyb.com
A conference call for U.K. and European analysts and investors will be held at
8:00 a.m. (GMT) today. To register for this, please contact Silvana Marsh at
Finsbury on +44 20 7251 3801. A live audiocast of this call and replay facility
will be available on Sky's corporate website, http://www.sky.com/corporate.
There will be a separate conference call for US analysts and investors at 10.00
a.m. (EST) today. Details of this call have been sent to US institutions and can
be obtained from Dana Johnston at Taylor Rafferty on +1 212 889 4350. A live
audiocast of this call and replay facility will be available on Sky's corporate
website, http://www.sky.com/corporate.
Results highlights
All financial results have been prepared in accordance with International
Financial Reporting Standards ("IFRS"), including comparatives.
Customer Metrics
'000s 30-Sep-07 30-Jun-07 Net additions
------------------------------------------ --------------------- ------------------------ ------------------------
Total customers(1)(2)(3) 8,665 8,582 83
Additional products:
Sky+(4) 2,697 2,374 323
Multiroom(5) 1,411 1,343 68
HD 358 292 66
Broadband 939 716 223
Telephony 679 526 153
Other KPI's:
Churn for the quarter (annualised) 11.3% 12.1% n/a
ARPU GBP411 GBP412 n/a
========================================== ===================== ======================== ========================
(1) Includes DTH customers in Republic of Ireland. (513,000 as at 30 September
2007, 497,000 as at 30 June 2007.)
(2) DTH customers include only primary subscriptions to Sky (no additional Sky+
or Multiroom subscriptions are counted). This does not include Freesat customers
who do not subscribe to an additional Sky service or churned customers viewing
free-to-air channels.
(3) DTH customers include customers taking Sky packages via DSL through Tiscali
TV.
(4) Sky+ includes HD households.
(5) Multiroom includes households subscribing to more than one digibox. (No
additional units are counted for the second or any subsequent Multiroom
subscriptions within one household.)
Financial Summary (unaudited)
GBP'millions 3 months to Sep-07 3 months to Sep-06 % movement
------------------------------------- ------------------------ ------------------------ --------------------------
Income statement:
Revenue(6) 1,185 1,071 +11%
Gross profit 782 678 +15%
% Margin 66% 63%
Operating profit(7) 143 180 -21%
% Margin 12% 17%
Exceptional items((8)) (7) (3) n/m
Adjusted operating profit 150 183 -18%
Profit for the period 84 116 -28%
Cash flow information:
EBITDA 201 224 -10%
Cash generated from operations 52 59 -12%
Net debt((9)) (2,018) (997) -102%
===================================== ======================== ======================== ==========================
Per share information (pence): 3 months to Sep-07 3 months to Sep-06
-------------------------------------- ------------------------ ------------------------- ------------------------
EPS - basic 4.8 6.5
EPS - adjusted((10)) 5.0 6.4
====================================== ================ ================ ================ ========================
(6) Revenue includes GBP46 million from Sky Broadband and Talk and GBP40 million
from Easynet Enterprise
(7) Operating profit includes net operating losses of GBP51 million from Sky
Broadband and Talk and GBP6 million from Easynet Enterprise and a GBP7 million
exceptional charge
(8) Exceptional items include amounts relating to EDS litigation costs
(9) Cash, cash-equivalents, short-term deposits, borrowings and borrowings
related financial instruments
(10) Adjusted EPS excludes mark-to-market in derivative financial instruments
that do not qualify for hedge accounting and an exceptional charge of GBP7
million (2007: GBP3 million)
OVERVIEW
We are pleased with the start that we have made to the year. In a highly
competitive environment, we saw the highest first quarter new DTH customer
additions for four years, a further reduction in churn and record first quarter
total product sales. Sky Broadband passed the one million customer milestone in
October. We continue to focus on the successful execution of our plans.
Better choice, quality and value have continued to attract new customers and to
increase the numbers of products chosen by our existing customers. This quarter
has seen:
o A near doubling of total product sales from last year to over 1.2 million;
o Record quarterly Sky+ growth of 323,000;
o Strong Multiroom and Sky HD customer growth; and
o Sky as the fastest growing UK broadband and telephony provider
Net DTH customer growth of 83,000 reflected good new DTH customer additions and,
despite retail price changes, a further improvement in churn to 11.3%, the
lowest for five quarters.
Our financial performance for the quarter reflected strong top-line growth and
our investment for future growth. Total revenue increased by 11% to GBP1,185
million. Operating profit of GBP143 million included a full first quarter's
investment of GBP51 million in Sky Broadband and Sky Talk, and GBP6 million in
Easynet Enterprise, as well as exceptional legal costs of GBP7 million.
Excluding these items, underlying operating profit of GBP207 million was strong.
As expected, subscription revenue growth was offset by the impact of the new
Barclays Premier League contract and the non-renewal of the agreement to supply
our basic channels by Virgin Media. Customer demand for Sky+ and Multiroom
upgrade volumes was very strong, and while this incurred short term cost, it
will bring important future benefits through higher ARPU and reduced churn. We
expect that the performance for the full year will be in line with our plans.
OPERATIONAL REVIEW
New DTH customers of 327,000 were the highest first quarter gross additions for
four years. Total product sales exceeded one million for the fourth consecutive
quarter: 30% of Sky+ additions and 17% of HD additions were new Sky customers;
39% of broadband additions were new Sky customers, up from 27% in the previous
quarter.
Despite retail price changes, DTH churn for the quarter (annualised) recorded
its second consecutive decline to 11.3%, a reduction of 0.8 percentage points
from the previous quarter, and is at its lowest level for five quarters.
ARPU experienced a decline in line with our expectations, of GBP1 to GBP411,
which primarily reflected the one-off loss of PremPlus revenues (GBP5). We
expect ARPU to grow for the rest of the financial year, reflecting greater
product penetration, increased contributions from broadband and telephony and
the full benefit of the retail price changes which were effective from 1
September 2007.
Product penetration and customer mix continue to improve. The number of
additional products chosen by our customers has almost doubled in the last 12
months; and 488,000 customers now choose TV, Sky Broadband and Sky Talk, a 54%
increase from last quarter. Sky+ households increased by a record 323,000, more
than double the comparable period's growth, to reach 2.697 million, 31%
penetration of the base. Multiroom households' growth accelerated to 68,000 in
the quarter, now 16% of the base; and Sky HD also showed good growth, increasing
by 23% to 358,000, 4% of the base. We provide the UK's most comprehensive high
definition TV service and recently announced an agreement with Channel 4 to
simulcast its main channel in high definition from December.
During the quarter we again improved the quality and flexibility of our
programming. In August we launched our coverage of the new Barclays Premier
League season, and recorded our highest average audiences for a football season
since 2003/04. Sky Sports will show 92 live games, more than ever before, and
also broadcast them simultaneously via HD, broadband and mobile. We renewed our
agreement with the European Tour for exclusive live rights to the European PGA
Tour and the Ryder Cup for a further four years. The new agreement means Sky
Sports will show The Ryder Cup in 2008, 2010 and 2012 as well as 32 events from
The European Tour, each season, until the end of 2012. Under a new contract with
the Rugby League World Cup organisers, Sky Sports will show the final five
Qualifiers this November then all 18 matches from next year's World Cup Finals
exclusively live. We have also secured the exclusive rights to show Ricky
Hatton's WBC Welterweight title fight against Floyd Mayweather in December.
In September we announced Sky One's Autumn season of programmes, headlined by
'Are You Smarter Than A 10-Year-Old' and 'Prison Break'. The new season includes
compelling drama from the US, ground-breaking new UK formats and the return of
the BAFTA award-winning series 'Ross Kemp on Gangs'. 90% of Sky One's new shows
will be broadcast in high definition.
Sky Broadband remained the UK's fastest growing broadband provider. Customer
numbers increased by a further 31% to 939,000, 89% of whom were within our
network. Of these on-net customers, around 70% opted for a paid-for package. The
increase in the proportion of on-net customers reflected bulk migrations of
customers within our network coverage area. During October we surpassed the
milestone of one million broadband customers, reflecting our brand strength and
speed of execution in the sector. At the end of the quarter the Group also had a
further 30,000 customers registered to UK Online, Easynet's Broadband service,
bringing the total number of broadband customers to 969,000 at the end of the
quarter.
Sky Talk also performed well. Customer numbers increased by a further 29% to
679,000. We have more than tripled the Sky Talk customer base in 12 months. 52%
of Sky Broadband customers at the end of September also chose a Sky Talk
package.
We have made further improvements to our customer experience, with particular
focus on our contact centres. We have changed the way we reward customer service
agents by placing more emphasis on customer satisfaction, and have changed the
team structures to allow more time for leaders to coach our front line advisors.
Systems development has improved the speed in which we answer calls, and ensures
more customers get through first time to the advisors best equipped to solve
their issues.
We have continued to take a lead in the areas of environment and education.
During the quarter, we confirmed that we have reduced our carbon footprint on a
like for like basis by 8% since 2005/06, and by 27% since 2003/04 (figures
audited by ERM). In addition, in partnership with Vauxhall, we have recently
commenced a B30 bio-diesel trial for our van fleet. The B30 fuel is from a
sustainable source and it is anticipated that the trial will result in a 20%
reduction in CO2 emissions per van. In addition 140 hybrid cars have replaced
team managers' vans in the fleet which will reduce CO2 emissions by more than
30% per vehicle.
We have also expanded Sky Learning, our service linking customers with
educational programmes and other material available through the Sky platform.
Students, teachers and parents can now search for content relevant for 6 GCSE
subjects and 3 A Level subjects from the thousands of hours of programming
broadcast every month. The Sky Learning service has been endorsed as an
important supplement to traditional classroom tools by the Innovation Unit at
the Department for Children, Schools and Families.
In September, we published the Bigger Picture Review 2007 detailing progress
over the past 12 months and setting targets for the year ahead. It is available
to view or download at www.Sky.com/responsibilities
FINANCIAL SUMMARY
Our financial performance for the quarter reflected strong top-line growth,
investment for future growth and very strong existing customer demand for
additional products. Total revenue increased by 11% to GBP1,185 million with
operating profit at GBP143 million, although this increased to GBP150 million on
an adjusted basis when excluding exceptional costs of GBP7 million.
Revenue
Group revenue showed strong growth, increasing by 11% on the comparable period
to GBP1,185 million (2007: GBP1,071 million). This included GBP46 million from
Sky Broadband and Talk and GBP40 million from Easynet Enterprise.
Retail subscription revenue increased by 12% on the comparable period to GBP898
million (2007: GBP799 million), the highest growth rate for four years,
reflecting a 5% increase in the average number of DTH customers, one month's
benefits from the retail price changes announced on 1 September 2007 and
increased broadband and telephony customers. Customer growth more than offset a
temporary reduction in ARPU, to GBP411, which principally reflected the one-time
loss of PremPlus revenues.
Wholesale subscription revenue fell by GBP10 million to GBP43 million, with
continued reductions in cable TV premium subscribers and the impact from the
non-renewal of the contract to supply Sky's basic channels by Virgin Media.
Advertising revenue remained flat at GBP78 million. Growth in the overall TV
advertising sector offset the impact from the non-renewal of the contract to
supply Sky's basic channels by Virgin Media.
We estimate that the non-renewal of the basic channels carriage agreement by
Virgin Media will adversely impact operating profit by around GBP15 million for
each full quarter that the channels remain off their platform.
Sky Bet revenue was GBP11 million, an increase of 10% on the comparable period,
benefiting from consolidation of 365 Media Group plc and good growth in internet
sports betting and TV games.
Installation, hardware and service revenues increased by 46% to GBP73 million.
This increase reflected good DTH customer growth, strong levels of customer
upgrades to premium priced hardware and a full quarter's contribution from Sky
Broadband.
Gross margin
Programming costs increased by GBP10 million on the comparable period to GBP403
million. This reflected the new Barclays Premier League contract and increased
investment in Sky One. Despite this, gross margin for the Group increased by
three percentage points from the comparable period to 66%.
Other operating costs
Operating costs, excluding programming, increased by GBP141 million on the
comparable period to GBP639 million, reflecting a full quarter's consolidation
of Sky Broadband and Talk.
Marketing costs increased by GBP35 million on the comparable period to GBP196
million, the majority of which was driven by the absolute increase in customer
numbers, strong product upgrade volumes and higher above-the-line costs.
Subscriber management costs increased by GBP35 million to GBP186 million,
reflecting a full quarter of Sky Broadband and Talk investment and higher
installation, hardware and service costs, although these are offset by their
associated revenues. Administration and transmission costs increased by GBP35
million and GBP36 million to GBP137 million and GBP120 million respectively,
primarily due to a full quarter's investment from Sky Broadband and Talk and
higher depreciation from our infrastructure investment programme. Administration
costs also included the GBP7 million exceptional charge.
Profit
Reported operating profit of GBP143 million (2007: GBP180 million) included Sky
Broadband and Talk losses of GBP51 million, Easynet Enterprise losses of GBP6
million and an exceptional charge of GBP7 million. Group operating margin for
the quarter was 12% on a reported basis and 19% on an underlying basis.
After the Group's share of operating profits from joint ventures of GBP3 million
(2007: GBP2 million) and a net interest charge of GBP25 million (2007: GBP16
million), which included a positive GBP2 million mark-to-market movement (2007:
GBP7 million) on the value of non-IFRS hedge accounted derivatives, the Group
made a profit before tax in the period of GBP121 million (2007: GBP166 million).
The total tax charge for the period was GBP37 million (2007: GBP50 million), at
an effective rate of 31% (2007: 30%).
Earnings
The Group's profit for the period was GBP84 million (2007: GBP116 million),
generating basic EPS of 4.8p (2007: 6.5p). Adjusted profit for the period was
GBP87 million (2007: GBP113 million), generating adjusted earnings per share of
5.0 pence compared to 6.4 pence in the comparable period. The share capital at
the end of the quarter was 1,753 million.
Exceptional items
The Group reported an exceptional charge of GBP7 million within administration
expenses (2007: GBP3 million) relating to costs from the Group's claim against
EDS, which provided services to the Group as part of the Group's investment in
CRM systems software and infrastructure. We currently expect to incur
exceptional costs of around GBP16 million during the financial year in respect
of this claim.
Cash flow
Operating profit for the period was GBP143 million, generating reported EBITDA
of GBP201 million. Following a seasonal working capital outflow of GBP149
million (2007: GBP165 million) principally due to the payment of sports rights,
and investment in broadband and telephony, the Group recorded a cash inflow from
operations of GBP52 million (2007: GBP59 million). After net acquisition spend
of GBP59 million relating to the purchase of Amstrad plc, interest of GBP28
million, cash taxes of GBP37 million, capital expenditure of GBP80 million and
other sundry items, net debt as at 30 September 2007 was GBP2,018 million.
Financial position
The financial position of the Company remains strong. At 30 September 2007 the
Company had net debt of GBP2,018m, including cash and cash equivalents on the
balance sheet of GBP322m.
CORPORATE
On 31 July, the Group announced a recommended cash offer for Amstrad plc. The
offer was 150 pence in cash for each Amstrad share, and also contained a loan
note alternative, valuing Amstrad plc at approximately GBP125 million. On the 5
September the offer was declared unconditional in all respects, and on 8 October
Amstrad plc was formally de-listed from the London Stock Exchange.
Use of measures not defined under IFRS
This press release contains certain information on the Group's financial
position, results and cash flows that have been derived from measures calculated
in accordance with IFRS. This information should not be read in isolation of the
related IFRS measures.
Forward-looking statements
This document contains certain forward-looking statements within the meaning of
the United States Private Securities Litigation Reform Act of 1995 with respect
to the Group's financial condition, results of operations and business, and
management's strategy, plans and objectives for the Group. These statements
include, without limitation, those that express forecasts, expectations and
projections with respect to the potential for growth of free-to-air and pay-TV,
fixed line telephony, broadband and bandwidth requirements, advertising growth,
DTH subscriber growth, Multiroom, Sky+ and other services penetration, churn,
DTH and other revenue, profitability and margin growth, cash flow generation,
programming and other costs, subscriber acquisition costs and marketing
expenditure, capital expenditure programmes and proposals for returning capital
to shareholders.
These statements (and all other forward-looking statements contained in this
document) are not guarantees of future performance and are subject to risks,
uncertainties and other factors, some of which are beyond the Group's control,
are difficult to predict and could cause actual results to differ materially
from those expressed or implied or forecast in the forward-looking statements.
These factors include, but are not limited to, the fact that the Group operates
in a highly competitive environment, the effects of laws and government
regulation upon the Group's activities, its reliance on technology, which is
subject to risk, change and development, failure of key suppliers, its ability
to continue to obtain exclusive rights to movies, sports events and other
programming content, risks inherent in the implementation of large-scale capital
expenditure projects, the Group's ability to continue to communicate and market
its services effectively, and the risks associated with the Group's operation of
digital television transmission in the U.K. and Ireland.
Information on some risks and uncertainties are described in the "Risk Factors"
section of Sky's Annual Report for the year ended 30 June 2007. Copies of the
Annual Report are available on request from British Sky Broadcasting Group plc,
Grant Way, Isleworth TW7 5QD or from the British Sky Broadcasting web page at
www.sky.com/corporate. All forward-looking statements in this document are based
on information known to the Group on the date hereof. The Group undertakes no
obligation publicly to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
Appendix 1 - TV Subscriber and Market Data
First quarter as at Fourth quarter as First quarter as at
30 September 2007 at 30 June 2007 30 September 2006
DTH homes(1,2) (3) 8,665,000 8,582,000 8,258,000
Total TV homes in the U.K. and Ireland(4) 26,966,000 26,922,000 26,764,000
DTH homes as a percentage of 32% 32% 31%
total U.K. and Ireland TV homes
Cable - U.K. 3,428,000 3,411,000 3,251,000
Cable - Ireland 592,000 593,000 606,000
Total pay TV homes 12,685,000 12,586,000 12,115,000
Total pay TV homes as a percentage of total 47% 47% 45%
U.K. and Ireland TV homes
Sky+ homes 2,697,000 2,374,000 1,692,000
Multiroom homes(5) 1,411,000 1,343,000 1,093,000
HD homes 358,000 292,000 96,000
DTT - U.K.(6) 10,279,000 9,811,000 7,646,000
(1) Includes DTH customers in Republic of Ireland of 513,000 as at 30 September
2007.
(2) DTH customers includes only primary subscriptions to Sky (no additional Sky+
or Multiroom subscriptions are counted). This does not include Freesat customers
who do not subscribe to an additional Sky service or churned customers viewing
free-to-air channels.
(3) DTH homes include subscribers taking Sky packages via DSL through Tiscali
TV.
(4) Total U.K. homes estimated by BARB and taken from the beginning of the month
following the period end (latest figures as at 30 September 2007). Total Ireland
homes estimated by Ireland's Central Statistics Office.
(5) Multiroom includes households subscribing to more than one digibox. (No
additional units are counted for the second or any subsequent Multiroom
subscriptions.)
(6) DTT homes estimated by BARB and taken from the beginning of the following
month (latest figures as at 30 September 2007). These include Sky or Cable homes
that already take multi-channel TV.
Appendix 2 - Glossary
----------------------------------------------- ------------------------------------------------------
Useful definitions Description
----------------------------------------------- ------------------------------------------------------
Adjusted earnings per share Adjusted profit divided by the weighted average number
of ordinary shares during the year.
----------------------------------------------- ------------------------------------------------------
Adjusted operating profit Operating profit before taking account of exceptional
items.
----------------------------------------------- ------------------------------------------------------
Adjusted profit for the period Profit for the period adjusted to remove
mark-to-market movements in derivative financial
instruments that do not qualify for hedge accounting,
exceptional items and any changes in the estimate of
recoverable tax assets in respect of prior years.
----------------------------------------------- ------------------------------------------------------
ARPU Average Revenue Per User: the amount spent by the
Group's residential subscribers in the quarter,
divided by the average number of residential
subscribers in the quarter, annualised.
----------------------------------------------- ------------------------------------------------------
Churn The rate at which subscribers relinquish their
subscriptions, expressed as a percentage of total
subscribers.
----------------------------------------------- ------------------------------------------------------
Customer A subscriber to a DTH service.
----------------------------------------------- ------------------------------------------------------
DTH Direct-to-home: the transmission of satellite services
with a reception through a mini-dish.
----------------------------------------------- ------------------------------------------------------
EBITDA Earnings before interest, taxation, depreciation and
amortisation is calculated as operating profit before
depreciation and amortisation or impairment of
goodwill and intangible assets.
----------------------------------------------- ------------------------------------------------------
Gross margin Revenue less programming expenses as a proportion of
revenue.
----------------------------------------------- ------------------------------------------------------
Gross profit Revenue less programming expense.
----------------------------------------------- ------------------------------------------------------
HD High Definition.
----------------------------------------------- ------------------------------------------------------
Multiroom Installation of one or more additional set-top-boxes
in the household of an existing DTH customer.
----------------------------------------------- ------------------------------------------------------
Net debt Cash, cash-equivalents, short-term deposits,
borrowings and borrowings related derivative financial
instruments.
----------------------------------------------- ------------------------------------------------------
On-net Customers subscribing to our unbundled broadband
product.
----------------------------------------------- ------------------------------------------------------
Product Any service chosen by a Sky customer. These include
DTH, Sky+, Multiroom, Sky HD, Sky Broadband and Sky
Talk.
----------------------------------------------- ------------------------------------------------------
Sky Broadband and Talk Sky Broadband, Sky Talk and UK Online combined.
----------------------------------------------- ------------------------------------------------------
Sale A sale is a gross addition of any product.
----------------------------------------------- ------------------------------------------------------
Sky+ Sky's fully-integrated Personal Video Recorder (PVR)
and satellite decoder.
----------------------------------------------- ------------------------------------------------------
Underlying Excluding contribution from Sky Broadband and Talk,
Easynet Enterprise and exceptional items.
----------------------------------------------- ------------------------------------------------------
Viewing share Number of people viewing a channel as a percentage of
total viewing audience.
----------------------------------------------- ------------------------------------------------------
Appendix 3 - Consolidated financial statements
Consolidated Income Statement for the three months ended 30 September 2007
2007/08 2006/07
Three months Three months
ended ended
30 September 30 September
GBPm GBPm
Notes (unaudited) (unaudited)
Revenue 1 1,185 1,071
Operating expense 2 (1,042) (891)
___________________________________________________________________________________________________________________________________
EBITDA 201 224
Depreciation and amortisation (58) (44)
___________________________________________________________________________________________________________________________________
Operating profit 143 180
------------------------------------------------------------ ----------------- ---------------------------- -----------------------
Share of results from joint ventures and associates 3 2
Investment income 15 14
Finance costs (40) (30)
Profit before tax 121 166
------------------------------------------------------------ ----------------- ---------------------------- -----------------------
Taxation (37) (50)
Profit for the period 84 116
------------------------------------------------------------ ----------------- ---------------------------- -----------------------
Earnings per share from profit for the period (in pence)
Basic 4.8p 6.5p
Diluted 4.8p 6.5p
Adjusted basic 5.0p 6.4p
Adjusted diluted 5.0p 6.4p
------------------------------------------------------------ ----------------- ---------------------------- -----------------------
1. Revenue
2007/08 2006/07
Three months Three months
ended ended
30 September 30 September
GBPm GBPm
(unaudited) (unaudited)
Retail subscription 898 799
Wholesale subscription 43 53
Advertising 78 78
Sky Bet 11 10
Installation, hardware and service 73 50
Other 82 81
1,185 1,071
------------------------------------------------------------ ----------------- ---------------------------- -----------------------
2. Operating expense
2007/08 2006/07
Three months Three months
ended ended
30 September 30 September
GBPm GBPm
(unaudited) (unaudited)
Programming 403 393
Transmission and related functions 120 84
Marketing 196 161
Subscriber management 186 151
Administration 137 102
1,042 891
------------------------------------------------------------ ----------------- ---------------------------- -----------------------
Appendix 4 - Re-analysis of reported revenue by category
To provide a more relevant presentation, management has chosen to re-analyse the
revenue categories from those previously reported. Other revenue now principally
includes income from Easynet Enterprise, Sky Active and technical platform
service revenue.
----------------------- --- ------------------- ------------------- ------------------- ------------------- --------------------
Three months to Separate
30 September 2006 installation, Three months to 30
as previously Transfer of Sky hardware and September 2006
reported Active service Other Re-analysed
GBP million GBP million GBP million GBP million GBP million
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
----------------------- --- ------------------- ------------------- ------------------- ------------------- --------------------
Retail Subscription 792 7 799
Wholesale Subscription 53 53
Advertising 78 78
Sky Bet 10 10
Sky Active 22 (22) -
Installation,
Hardware and Service - 50 50
Other 116 22 (50) (7) 81
1,071 - - - 1,071
----------------------- --- ------------------- ------------------- ------------------- ------------------- --------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BRITISH SKY BROADCASTING GROUP PLC
Date: 2 November 2007 By: /s/ Dave Gormley
Dave Gormley
Company Secretary