BSKYB chief executive James Murdoch faces his first major test on today when he reveals that the rate of growth for new subscribers to the satellite broadcaster has slowed dramatically in the first three months of the year.
Murdoch will announce third-quarter results that are expected to show about 85,000 new subscribers between January and March this year against 150,000 who signed up to
Sky in the same period last year.
The company is currently advertising heavily and the City will want to hear how effective the campaign has been in promoting sales in the final quarter of its year.
Investment bank Societe Generale said: 'Initial concerns as to the new chief executive's long-term strategy have been subsumed by the more pressing need to show that he can meet the medium targets he inherited from his predecessors.' SG analysts believe that the number of new subscribers will rise in the final quarter of the year to 113,000, which will allow the company to meet its annual target of 566,000 new customers.
The company is expected to announce third-quarter revenue of £930 million (E1.4bn), up nearly 14 per cent, while profits are expected to be 83 per cent ahead at £128 million.
11-05-2004
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