3360/Sky Fact Book Update 05
skyfacts summer update 2003 On target: Sky measures its business progress by four key factors: subscriber As a business, Sky is going from strength to strength. growth, churn, average revenue per subscriber (ARPU), and subscriber At the end of March, we reported another strong set acquisition cost (SAC). of results. Operating profit almost doubled year-on-year, thanks to strong revenue growth and sustained cost control. We are on track to hit all our targets. Financial performance Over the last two years, BSkyB has steadily improved its financial position, after a period Subscriber growth: By March this year, of major investment in the late 1990s. The most recent Sky had 6.7m direct-to-home digital satellite subscribers – on track to hit the target of figures show that the company achieved an operating 7 million by year-end. profit of £254m in the first nine months of the 2002/03 financial year. This represents a 96% increase on the 6.7m corresponding period. Churn: The rate at which subscribers give The company’s joint venture portfolio made a dramatic up their subscriptions reached an all-time recovery, turning a £74m loss into a £1m operating low of 9.3%. profit. Net debt was reduced by £211m, from £1528m to £1317m. 9.3% Multichannel TV passes milestone Multichannel ARPU: Average revenue per subscriber rose TV has continued to increase its popularity in the UK, to £364, putting Sky on target to reach its objective of £400 by the end of 2005. with viewing share across all UK TV homes up 7% for the nine months to 31 March 2003.
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