Sky keeps on growing

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In a statement, overshadowed by the company's stormy AGM, Sky claimed 170,000 more subscribers during the quarter period to reach just over seven million.

Turnover for the three months to September 30 had risen 17 per cent on the same period last year to £850m and the operating profit almost doubled to £151m from £75m.

Average revenue per user (ARPU) increased by £18 to £366 and interactive revenues show a 70% increase to £75m. BSkyB is targeting an ARPU of £400 by 2005 and this will be helped by price rises planned for January.

At the end of September there were 184,000 subscribers to the Extra Digibox and 121,000 subscribers to Sky+, representing increases of 12 per cent and 15 per cent respectively in the quarter. The percentage of Sky+ subscribers taking Sky's top tier package, Sky World, was around 80 per cent. Sky recently announced that, from 1 October 2003, the £10 monthly Sky+ subscription would be waived for those customers who subscribe to two or more Sky premium sports or movie channels, and that this change, together with the recently launched marketing campaign, is expected to increase the take-up of Sky+ and Extra Digibox significantly compared to the average over the quarter.

Churn in the three-month period was 9.6 per cent, still below the symbolic 10 per cent mark, but a rise is expected once the new charges are introduced next year. Analysts said the results were slightly ahead of expectations.

The new chief executive James Murdoch said: "The current financial year has started well and we continue to grow both subscribers and revenues."