BSkyB Has Second Quarter Loss as ITV Investment Drops
Feb. 6 (Bloomberg) -- British Sky Broadcasting Group Plc, the U.K.'s biggest pay-TV broadcaster, posted a second-quarter loss as an investment in competitor ITV Plc fell in value.
The net loss was 196 million pounds ($385 million), or 11.2 pence a share, in the quarter ended Dec. 31, compared with a profit of 130 million pounds, or 7.4 pence, a year earlier, Isleworth, England-based BSkyB said today in a statement.
Sales at BSkyB, chaired by James Murdoch, rose 11 percent to 1.27 billion pounds, surpassing the average estimate of 1.25 billion pounds in a Bloomberg survey of eight analysts. Adjusted operating profit for the first half was 307 million pounds, matching the average prediction. The results may reassure investors who were concerned that a slowdown in consumer spending would hurt BSkyB, said Redwan Ahmed, an Oriel Securities analyst.
``An in-line set of numbers is a good set of numbers,'' said Ahmed, who is based in London and rates BSkyB ``sell.'' ``The market was slightly concerned about the numbers after a weak holiday for some retailers.''
ITV
BSkyB said last week it would post a loss of 343 million pounds in the first half after the value of its 17.9 percent stake in ITV dropped.
John Hutton, U.K. secretary of state for business, enterprise and regulation, last week told BSkyB to cut the stake to less than 7.5 percent to avoid harming competition.
The impairment was calculated on ITV's share price on Dec. 28, which was 36 percent less than the 135 pence per share BSkyB paid in 2006. BSkyB paid 940 million pounds for the holding, blocking plans by Virgin Media Inc. to acquire London-based ITV.
BSkyB rose 7 pence, or 1.3 percent, to 546 pence in London trading at 8:23 a.m. in London. The shares have fallen 4 percent in the past year.
The company added 167,000 net new subscribers and 260,000 broadband customers in the period. That compares with 183,000 net new subscribers and 149,000 net new broadband clients in the year-ago quarter.
BSkyB was predicted to have added 170,000 net new subscribers and 242,000 net new broadband customers in the period, the median estimates of eight analysts polled by Bloomberg.
``Broadband looks to be on track,'' said Oriel's Ahmed.
The company had 1.2 million broadband customers as of Dec. 31.
BSkyB began offering broadband in August 2006 and bundled it with its pay-TV and phone offerings to fend off competition from rivals including Hook, England-based Virgin Media and BT Group Plc, the U.K.'s biggest phone company.
Sursa & Foto : bloomberg.net
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