BSkyB have reported a higher than expected profit in the year to June 30th, and added another 81,000 subscribers. However, investors registered disappointment at these latest subscriber numbers and consequently, shares fell 7%.
After-tax profits were UK£322 million (€488 million), up 75% on the previous year, sales were UK£3.6 billion (€5.4 billion), a 15% rise.
The company is hoping to have 10 million subscribers by 2010, from 7.4 million currently. BSkyB are planning to spend UK£450 million on upgrading infrastructure during that period. BSkyB are keen to get 25% of new subscribers onto their Sky+ package. To achieve this, they will be increasing their marketing budget by 40% next year.
BskyB’s modest increase in subscriber numbers has possibly been affected by rival free-to-air service Freeview, which does not require a monthly subscription. It is likely that this will have a continuing affect as free-to-air services develop and improve their channel offerings.