Sky falling as price hike bites...

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Shares in pay-TV firm BSkyB fell 4.4 percent on Friday to £5.04p after the market reacted negatively to subscriber numbers.

The company said it added 57,000 net subscribers in the first quarter, below analyst expectations, as a higher percentage of customers left the service following a price increase.

Pre-tax profit rose 13.6 percent to 200 million pounds, and revenue climbed 8 percent to 1.023 billion pounds.

Churn, or the percentage of customers who left the service, rose to 11.7 percent, up from 10.5 percent in the previous quarter.

Analysts on average expected Sky to add 67,900 subscribers, according to a poll of 10 brokerages by Reuters, and churn of 10.7 percent.

Chief Executive James Murdoch said the company is on track to meet its targets of 8 million subscribers by the end of 2005 and 10 million by the end of 2010.

It currently has 7.8 million subscribers.

Source: Reuters
 
As a shareholder this is not good news...

They company increase profit to £200 million a rise of 13.6%!

Turnover is up to £1.023 billion!

And the share price drops over 4%!!!!
 
gameboy said:
And the share price drops over 4%!!!!
Click to expand...
Then surely this is the time to buy some more shares? :D
 
Ah but their churn rate appears to be rising, they need to decrease the cancellations.
 
PaulR said:
Then surely this is the time to buy some more shares? :D
Click to expand...

After holding them for a number of years I am still losing.

Despite making millions they have paid only one dividend.

They narrowly won the vote on the shares buy back today.

News Corp. in action...

I would advise you to steer clear - MR M is making the money....
 
The statement that I like is "Churn, or the percentage of customers who left the service, rose to 11.7 percent, up from 10.5 percent in the previous quarter.", may it continue to rise:D .
Users are finally seeing the light and voting with their feet.
 
JuMbuCk said:
The statement that I like is "Churn, or the percentage of customers who left the service, rose to 11.7 percent
Click to expand...

11.7% of the existing subscribers is over 889,000 - now that's a lot of cancellations - no wonder they're worried (shareholders).

On the other hand they may offer Sky+ boxes cheap or free soon. Good new for Sky - bad news for Pace (shareholders in Pace have taken a pounding over the last few years) don't get me started on that one....

These figures don't take account of the users that cut back on their subscriptions.

But the price rise has covered this and the ones that are left are paying!
 
They have not sussed out why people are leaving in droves. How many adverts on TV harp on about looking after your existing customers. In all the time I have been with Sky IMHO they have never looked after me, they have offered new subscribers better and cheaper packages and since I finally cancelled my full subscription two years ago not once have they telephoned me to offer me a deal of any kind.
 
toppervte33h said:
they have never looked after me, they have offered new subscribers better and cheaper packages
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Seems to be the latest business model - fewer customers, paying more.

Less receivers to maintain, engineers, help desk, back room staff to employ...
 
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