BSkyB broadband sales trigger rise in profits
Thursday 20th October 2011, by Harry Wallis
BSkyB has announced a rise in its first-quarter profits, after more customers signed up to its range of broadband deals.
In total, 150,000 new broadband users were gained by the provider during the three months preceding 30th September, whereas average revenue per user jumped £25 to £535 a year.
Furthermore, a total of 2.9 million consumers have now subscribed to all three TV, broadband and telephony services provided by the firm, accounting for a 29 per cent increase.
The broadband provider has also seen strong customer loyalty during the last quarter, despite the uncertain economic climate. Overall, its operating profits rose to £327 million in the four-month period.
BSkyB also confirmed that it added 683,000 total net products in the quarter, marking a 15 per cent year-on-year increase and taking its overall total to 26.1 million. Within this, 77,000 net households joined its customer base, thus raising it to 10.4 million.
The company is aiming to balance growth and returns in a sensible fashion, following growth when it is appropriate and investing carefully for consumers. It hopes that this approach will lead to a strong financial performance in the near-term.
BSkyB chief executive Jeremy Darroch said: "We continue to deliver strong financial results and good growth in customers and products. In tough market conditions, our move to more broadly based growth and multiple products is serving us well.
"New customers are choosing Sky over other providers, existing customers are taking more from us and our financial performance is accelerating."
While Sky's promising results point to a positive future, consumers searching for a new broadband deal may want to consider other options in the market.
For example, BT offers a number of broadband connections and is handing its customers the opportunity to win tickets for the 2012 Olympics, purely by utilising internet services.
It is asking customers to match an Olympic record by logging onto one of its WiFi hotspots or completing a phone call.