Sky's subscriber growth slows

Sky has announced its results for the quarter ended September 30, 2004 and, as expected, there were mixed fortunes reported within.

Although remaining healthily positive, net subscriber growth was down from 81,000 the previous quarter to just 62,000. The figures, which take Sky's total subscriber base to 7,417,000, were suprisingly higher than the 50,000 predicted by analysts.

The clear success story was personal video recorder service Sky+, which reported a 20% increase in its subscriber base over the quarter to 474,000 households (a net increase of 77,000). The number of multiroom subscriptions was up by 64,000 to 357,000.

The ARPU figure - which measures the total amount a subscriber will spend, on average in a year - stood at £377, inching ever closer to the £400 target set for the end of 2005.

As usual, a string of increases also applied to the company's key financial results: operating profit before goodwill up to £190 million, profit after tax up to £122 million and advertising revenues up to £72 million

"Sky achieved a solid set of results in the first quarter, with good sales and profit growth and we remain in a strong financial position," said Sky CEO James Murdoch.

"During the quarter we made good progress on the operational plans that will deliver the growth strategy laid out in August, with a number of initiatives now rolling out. These include a new advertising campaign ‘What do you want to watch,’ the launch of Sky+ 160 and entry level Sky ‘starter pack’ products.

"Continued investment in high quality programming included the launch of Football First and the autumn season on Sky One. Our second quarter has commenced in line with expectations as we begin the important run up to Christmas."