FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the month of April 2008
30 April 2008
BRITISH SKY BROADCASTING GROUP PLC
(Name of Registrant)
Grant Way, Isleworth, Middlesex, TW7 5QD England
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): Not Applicable
EXHIBIT INDEX
Exhibit
EXHIBIT NO. 1 Press release of British Sky Broadcasting Group plc
announcing 3rd Quarter Results released on 30 April 2008
BRITISH SKY BROADCASTING GROUP PLC
Interim Management Statement for the nine months ended 31 March 2008
Customer growth up 10%; revenue growth up 10%; on track for full year
Operational Performance: Customer growth in line with targets
* Net customer growth in the quarter of 56,000 to 8.888 million
- New customer additions of 289,000
- Lowest third quarter churn for four years at 10.5%
- ARPU increases to GBP424
* Total gross product sales of 1.2 million in the third quarter included:
- Growth in Sky+ households of 262,000 to 3.393 million
- Multiroom growth of 40,000 to 1.571 million
- HD growth of 43,000 to 465,000
- Broadband growth of 229,000 to 1.428 million
- Sky Talk growth of 180,000 to 1.095 million
Financial Performance: Strong top-line growth
* Revenue increased by 10% on the comparable period(1) to GBP3,706 million
* Gross margin increased by one percentage point on the comparable period to
65%(2) (excluding exceptional item)
* Operating profit of GBP504 million included GBP127 million of investment in
residential broadband and telephony, GBP20 million of investment in Easynet
Enterprise and an exceptional charge of GBP17 million
* Adjusted operating profit of GBP521 million(3) reflected strong product
volumes
* Adjusted earnings per share of 17.0 pence (2007: 19.5 pence); basic loss
per share of 6.8 pence includes net exceptional items of GBP415 million(4)
(1) Nine months ended 31 March 2007
(2) Gross margin in the comparable period excludes a one-off receipt of GBP65
million from a third party channel provider, accounted for within
programming costs
(3) Adjusted operating profit for the nine months to 31 March 2008, excludes an
exceptional item of GBP17 million relating to EDS legal costs
(4) Net exceptional items include GBP17 million relating to EDS legal costs, an
impairment of GBP474 million relating to the Group's investment in ITV, a
GBP67 million gain relating to an exchange transaction for National
Geographic, GBP5 million gain relating to mark-to-market in derivative
financial instruments that do not qualify for hedge accounting and related
tax adjustments of GBP4 million
Jeremy Darroch, Chief Executive said:
"We are reporting a strong set of results today. We are delivering for customers
through a combination of great quality, value and service. As a result, more
customers are choosing Sky, they are more satisfied and they are taking more
products than ever before. In the third quarter, despite a difficult consumer
environment, customer growth increased by 10% on last year and third-quarter
churn was at a four-year low.
"The success of our strategy is reflected in our financial performance. Revenue
growth of 10%, increased quarterly profitability and reducing broadband losses
put us on track to achieve our targets."
Enquiries:
Analysts/Investors:
Robert Kingston Tel: 020 7705 3726
Francesca Pierce Tel: 020 7705 3337
E-mail: investor-relations@bskyb.com
Press:
Robert Fraser Tel: 020 7705 3036
Bella Vuillermoz Tel: 020 7800 2651
E-mail: corporate.communications@bskyb.com
A conference call for UK and European analysts and investors will be held at
08.30 a.m. (BST) today. To register for this, please contact Kirsty Flockhart at
Finsbury on +44 20 7251 3801. A live webcast of this call and replay facility
will be available on Sky's corporate website, http://www.sky.com/corporate.
There will be a separate conference call for US analysts and investors at 10.00
a.m. (EST) today. Details of this call have been sent to US institutions and can
be obtained from Dana Johnston at Taylor Rafferty on +1 212 889 4350. A live
webcast of this call and replay facility will be available on Sky's corporate
website, http://www.sky.com/corporate.
Results highlights
All financial results have been prepared in accordance with International
Financial Reporting Standards ("IFRS"), including comparatives.
Customer Metrics
'000s 31-Mar-08 31-Dec-07 Net additions
----------------------------------- ----------------------- ----------------------- -----------------------
Total customers(1)(2)(3) 8,888 8,832 56
Additional products:
Sky+(4) 3,393 3,131 262
Multiroom(5) 1,571 1,531 40
HD 465 422 43
Broadband 1,428 1,199 229
Telephony 1,095 915 180
Other KPI's:
Churn 10.5% 10.0%
ARPU GBP424 GBP421
=================================== ======================= ======================= =======================
(1) Includes DTH subscribers in Republic of Ireland. (548,000 as at 31 March
2008, 535,000 as at 31 December 2007.)
(2) DTH subscribers include only primary subscriptions to Sky (no additional
Sky+ or Multiroom subscriptions are counted). This does not include
customers taking Sky's freesat offering or churned customers viewing
free-to-air channels.
(3) DTH subscribers include subscribers taking Sky packages via DSL through
Tiscali TV.
(4) Sky+ includes HD households
(5) Multiroom includes households subscribing to more than one digibox. (No
additional units are counted for the second or any subsequent Multiroom
subscriptions within one household.)
Financial Summary (unaudited)
GBP'millions 9 months to Mar-08 9 months to Mar-07 % change
-------------------------------------------------- ------- --------------- ---------------------- ---------------
Income statement:
Revenue 3,706 3,376 10%
Gross Profit(6) 2,411 2,223 8%
% Margin 65.1% 65.8%
Operating Profit 504 613 -18%
% Margin 13.6% 18.2%
Exceptional operating items(7) (17) 56 -
Adjusted operating profit 521 557 -6%
Impairment of available-for-sale investment(8) (474) - -
(Loss) profit for the period (118) 388 -
Cash flow information:
EBITDA 684 750 -9%
Cash generated from operations(9) 614 732 -16%
Net debt(10) 1,912 1,810 6%
================================================== ======= =============== ====================== ===============
Per share information (pence): 9 months to Mar-08 9 months to Mar-07 % change
-------------------------------------------------- ------- --------------- ---------------------- ---------------
EPS - adjusted(11) 17.0 19.5 -13%
(Loss) earnings per share - basic (6.8) 22.1 -
================================================== ======= =============== ====================== ===============
(6) Gross profit in the nine months to 31 March 2007 includes a one-off receipt
of GBP65 million from a third party channel provider, accounted for within
programming costs. Excluding this, gross margin was 63.9% in the comparable
period.
(7) Exceptional operating items include amounts relating to EDS legal costs in
both 2008 (GBP17m) and 2007 (GBP9m), and a one-off receipt of GBP65 million
from a third party channel provider in 2007
(8) Impairment of available-for-sale investment relates to an impairment of
GBP474 million relating to the Group's investment in ITV
(9) Cash from operations for the nine months to 31 March 2007 includes net
exceptional receipt of GBP56 million
(10) Cash, cash-equivalents, short-term deposits, net of borrowings and
borrowings related financial instruments
(11) Adjusted EPS for the nine months excludes GBP17 million litigation fees
relating to EDS, an impairment of GBP474 million relating to the Group's
investment in ITV, a GBP67 million gain relating to an exchange transaction
for National Geographic, GBP5 million gain relating to mark-to-market of
derivative financial instruments that do not qualify for hedge accounting
and related tax adjustments of GBP4 million
OVERVIEW
Customer growth continues to be strong despite a difficult consumer environment
and we are on track for our target of 10 million customers in 2010. We continue
to focus on quality growth. Increasing new product penetration means that over
half of our customers now take at least one additional product. A reduction in
short-term viewing package discounts and the implementation of an installation
charge across all products are contributing to the long-term health of the
business. While these actions impact gross additions, the benefits can be seen
in customer loyalty, with third quarter churn of 10.5% at its lowest level for
four years, and good growth in ARPU, which reached GBP424.
Key operational highlights for the three months to 31 March 2008 ("the quarter")
were:
* Net customer additions of 56,000 up 10% year on year
* The lowest third quarter churn for four years at 10.5%
* ARPU of GBP424 in the third quarter, up 4% year on year
* More than half of customers now take an additional product
* Sky+ additions of 262,000 increasing penetration of Sky+ to 38% of
customers
* Sky Broadband additions of 229,000 customers to 1.4 million and Sky Talk
additions of 180,000 to 1.1 million customers, maintaining our position as
the fastest growing broadband and home telephony provider in the UK
The financial performance for the nine months to 31 March 2008 ("the period")
was in line with our expectations. Revenue increased by 10% to GBP3.7 billion,
driven by growth in both TV customers and sales of additional products. Adjusted
operating profit of GBP521 million, a decline of GBP36 million, reflects our
continued investment in residential broadband and telephony, the loss of related
fees and advertising revenue from the non-carriage of our basic channels on
cable, and the additional cost this year of the new Barclays Premier League
contract. Statutory operating profit of GBP504 million includes GBP127 million
investment in our broadband and telephony services, GBP20 million of investment
in Easynet Enterprise and GBP17 million of exceptional legal costs.
In accordance with IAS 39 "Financial Instruments Recognition and Measurement
("IAS 39"), the results for the quarter reflect a further impairment charge of
GBP131 million relating to the Group's investment in ITV plc, taking the total
for the period to GBP474 million. The impairment charge has been treated as an
exceptional item and was determined with reference to ITV's equity share price
at 28 March 2008.
OPERATIONAL REVIEW
Total product sales exceeded four million in the period, a record level of
demand, and up by around 40% on the comparable period. Demand for Sky products
remained strong among both existing Sky TV customers and new customers joining
Sky. During the quarter, 42% of additions to Sky+, 24% of additions to Sky HD
and 41% of additions to Sky Broadband were new customers to Sky.
Third quarter net customer additions increased by 10% to 56,000 with improved
churn more than offsetting lower gross additions, which in the third quarter of
the prior year benefited from the launch of "See, Speak, Surf". Customer loyalty
is benefiting from specific actions we have taken, with third quarter churn of
10.5% at its lowest level for four years. We continue to manage and target our
business towards 10 million customers in 2010.
Loyalty and customer satisfaction is also benefiting from strong take-up of
additional products such as Sky+, Sky Broadband and Sky Talk, with over half of
customers now taking an additional product.
Sky+ continued to show strong growth, increasing by 262,000 in the quarter, to
3.4 million customers or 38% penetration of our customer base. Multiroom
households grew by 40,000 in the quarter, now 18% of the base. Sky HD grew by
43,000 to 465,000, 5% of the base. During the quarter, we added a further three
channels to our high definition ("HD") service: Sky Movies Premiere HD, Sky
Sports HD3 and Rush HD. FX HD launched in April, bringing the total number of HD
channels available on Sky to 18, providing customers with a far greater choice
of HD viewing than any other TV platform.
Sky Broadband added a further 229,000 customers to take the total to 1.4
million(1) maintaining its position as the fastest growing broadband provider in
the UK. As at 31 March 2008, 88% of Sky Broadband customers were on our network
and around two-thirds of these on-net customers are taking a paid-for product.
For the second year running, the uSwitch "Broadband satisfaction awards"
recognised the quality and value offered by Sky Broadband, honouring Sky with
the "Best Deal for You" and "Joint Best value for Money" awards.
Sky Talk surpassed one million customers during the quarter with net additions
of 180,000 to reach 1.1 million. At 31 March 2008, 57% of Sky Broadband
customers also took Sky Talk. Sky Talk also received recognition of its service
in the recent uSwitch "Home Phone Customer Satisfaction Awards 2008". Consumers
ranked Sky Talk, the newest entrant in the home phone sector, as the best
telephony provider and winner of seven out of eleven categories including "Best
overall customer satisfaction" and "Most likely to be recommended".
As the rapid progress of Sky Broadband and Sky Talk continues, there remains a
substantial opportunity for further growth, with less than one in ten Sky
customers taking the combination of TV, broadband and telephony at the end of
the third quarter.
Our content offering performed strongly throughout the quarter and was supported
by investment in content-focused above-the-line marketing to communicate the
breadth and quality of our programming. The Easter weekend was particularly
strong; Sky Sports achieved its highest ever viewing for the Barclays Premier
League in its Grand Slam football weekend on 23 March 2008 and Sky One achieved
outstanding audience figures with both original programming and US acquisitions.
"Ross Kemp in Afghanistan" and US drama "Lost" both consistently achieved
audiences of over one million, while the adaptation of Terry Pratchett's "The
Colour of Magic" reached over two million viewers with its first episode, making
Sky One the third most watched channel in Sky homes over Easter.
During the quarter, Sky Sports secured a new three-year agreement for live
coverage of the UEFA Champions League from the 2009/10 season. Under the new
contract, Sky Sports will show more live matches than ever before, with an
increase in both the number of games and match nights. In addition to the live
rights, we have also secured cross-platform rights for mobile and broadband and
highlights packages.
During the quarter, Sky made significant contribution in the areas of enriching
programming, education, the environment and accessibility of the arts. In April,
Sky News was awarded a BAFTA for the quality of its news coverage of the Glasgow
airport attack and continues to set the pace of innovation in 24 hour breaking
news. Sky News remains the only British television news service that does not
receive any public subsidy.
At the first anniversary of the launch of auto standby, the UK-pioneered
software has been downloaded to more than four million Sky+ and HD set-top
boxes. To date, it has saved our customers more than GBP16 million on their
electricity bills and 52,000 tonnes of CO2, more than Sky's entire direct
operational footprint of 45,555 tonnes CO2.
Sky Learning launched 'Sky Learning Explorer' in the quarter, which directs
customers to programming linked to eight GCSEs, seven A-levels and eight adult
interests and passions. Sky has also signed an innovative agreement with Open
University to offer customers free introductory courses.
At a time of concern over funding for arts organisations and the price of
attending performances, Sky has provided unique opportunities to attend a number
of cultural events. Through our partnership with the English National Opera,
thousands of Sky customers were able to attend a performance for just GBP5, and
hundreds of local school children were offered educational workshops.
(1) An additional 28,000 business and professional services were registered to
the UK Online service which are not included in this figure
FINANCIAL SUMMARY
Our financial performance for the period demonstrates strong top-line growth and
positions us well as we exit our 2008 financial year. The underlying strength of
our Pay TV business is helping to offset the expected impact of the new Barclays
Premier League contract and the non-carriage of our basic channels on cable. In
addition, the peak level of broadband investment is now behind us. EBITDA,
excluding exceptional items, remained strong at GBP701 million, an increase of
GBP7 million on the comparable period. Adjusted operating profit was GBP521
million (2007: GBP557 million) and statutory operating profit of GBP504 million
included GBP127 million of investment in residential broadband and telephony,
GBP20 million of investment in Easynet Enterprise, and exceptional legal costs
of GBP17 million.
Revenue
Revenue growth remained strong, increasing by 10% year on year to GBP3,706
million (2007: GBP3,376 million), driven by continued product and customer
growth. Group revenue included GBP176 million from residential broadband and
telephony (2007: GBP41 million), and GBP130 million from Easynet Enterprise
(2007: GBP117 million).
Retail subscription revenue increased by 12% on the comparable period to
GBP2,808 million (2007: GBP2,514 million). Underlying growth was primarily
driven by a 5% increase in the average number of DTH customers and ARPU growth
of 6% over the nine month period. ARPU increased by GBP3 from the prior quarter,
with the increased penetration of paid-for products offsetting the GBP4 decline
of non-recurring revenue related to the Hatton pay per view event in the second
quarter.
Wholesale and advertising revenue reflected the non-carriage of our basic
channels on Virgin Media's cable network. Wholesale subscription revenue fell by
GBP26 million to GBP136 million (2007: GBP162 million) and advertising revenue
decreased by GBP10 million to GBP248 million (2007: GBP258 million).
Sky Bet revenue of GBP35 million (2007: GBP34 million), increased by 3% on the
comparable period, benefiting from the consolidation of 365 Media Group plc
(acquired in January 2007) and growth in internet sports betting and TV games.
In particular, Sky Poker has performed strongly since its launch in February
2007.
Installation, hardware and service revenue was GBP212 million (2007: GBP167
million), up 27% on the comparable period. This increase reflects the strong
growth in product sales and broadband additions, as well as the addition of a
standard installation fee across all products.
Other revenue of GBP267 million (2007: GBP241 million) increased by 11% on the
comparable period. The majority of this increase was driven by growth in Easynet
Enterprise revenues and the first time consolidation of Amstrad (acquired in
September 2007).
Gross margin
Gross profit was GBP2,411 million for the period, generating a gross margin of
65% (2007: 66%). Excluding the one-off receipt of GBP65 million from a third
party channel provider in the comparable period, gross margin increased by one
percentage point on the comparable period.
Programming costs of GBP1,295 million (2007: GBP1,153 million), increased by
GBP142 million. Excluding the one-off receipt of GBP65 million in the comparable
period, programming costs increased by GBP77 million. This increase was
primarily due to higher Barclays Premier League costs and investment in
entertainment channels, partially offset by foreign exchange benefits.
Other operating costs
Operating costs excluding programming, increased by GBP297 million on the
comparable period to GBP1,907 million (2007: GBP1,610 million) and include
broadband and telephony operating costs of GBP297 million, GBP150 million of
Easynet Enterprise costs and GBP17 million of exceptional legal fees. Excluding
these costs, other operating costs increased by GBP137 million on the comparable
period, reflecting continued strong demand for products.
Marketing costs for the period increased by GBP23 million to GBP569 million
(2007: GBP546 million). This reflected the upfront cost of meeting strong Sky+
demand, higher above the line marketing spend and the costs of servicing an
overall larger subscriber base, partially offset by lower subscriber additions.
Third quarter marketing costs fell by GBP7 million with a lower rate of above
the line spend in both broadband and pay TV, partially offset by the higher cost
of strong growth in Sky+ volumes.
Subscriber management costs of GBP548 million increased by GBP81 million on the
comparable period. This increase was primarily driven by a full nine months
investment in residential broadband and telephony, and the first time
consolidation of Amstrad. The remaining increase was due to the cost of higher
year on year product sales, which has a corresponding benefit to installation,
hardware and service revenue.
The remaining other operating expenses increased by GBP193 million to GBP790
million (2007: GBP597 million) primarily due to the inclusion of residential
broadband and telephony and Easynet Enterprise. Administration costs of GBP395
million included a GBP17 million exceptional charge relating to the legal costs
of the Group's claim against EDS, a full nine-month's of consolidation of
Amstrad and 365 Media costs and higher depreciation following our investments in
infrastructure and systems.
Exceptional items
In accordance with IAS 39, following a review of the carrying value of the
Group's investment in ITV plc at 28 March 2008, we have recognised a further
impairment loss of GBP131 million for the quarter, totalling GBP474 million for
the period. This was determined with reference to ITV's equity share price at 28
March 2008 (the last trading day of the Group's reporting period).
As previously reported, in December 2007, Sky effectively exchanged its 50%
share in the National Geographic Partnership UK for 21% interests in National
Geographic Channel (NGC) Network International, LLC, and NGC Network Latin
America, which resulted in a gain on disposal of joint ventures of GBP67
million.
The Group reported an exceptional charge of GBP17 million within administration
expenses (2007: GBP9 million) relating to legal costs from the Group's claim
against EDS, which provided services to the Group as part of the Group's
investment in CRM systems software and infrastructure. We currently expect to
incur exceptional costs of around GBP21 million in total for the 2008 financial
year in respect of this claim.
Earnings
Adjusted earnings per share of 17.0 pence (2007: 19.5 pence) reflected our
investment in residential broadband and telephony, higher costs of the new
Barclays Premier League contract and the impact of the non-carriage of our basic
channels on cable.
Statutory loss per share of 6.8 pence (2007: earnings per share of 22.1 pence)
included an impairment charge of GBP474 million relating to the Group's
investment in ITV, GBP17 million of legal costs, GBP5 million gain on
mark-to-market of derivative financial instruments and related tax adjustments
of GBP4 million, and a gain on disposal of a joint venture of GBP67 million.
The issued share capital at the end of the period was 1,753 million (2007: 1,753
million).
Cash flow
The financial position of the Group remains strong, with GBP614 million of
operating cash flow generated year to date, which, when combined with existing
cash balances is sufficient to meet all of our operating and repayment
requirements falling due within the current and next financial years. At 31
March 2008 the Group had net debt of GBP1,912 million, including cash and cash
equivalents on the balance sheet of GBP751 million.
A working capital outflow of GBP70 million (2007: GBP18 million) was higher than
the comparative period due to the new Barclays Premier League contract and other
programming prepayments. Capital expenditure was GBP247 million and included
GBP79 million investment in residential broadband and Easynet Enterprise.
Acquisition spend was GBP71 million, and mainly related to the Group's
acquisition of Amstrad plc, acquired in September 2007.
Use of measures not defined under IFRS
This press release contains certain information on the Group's financial
position, results and cash flows that have been derived from measures calculated
in accordance with IFRS. This information should not be read in isolation of the
related IFRS measures.
Forward-looking statements
This document contains certain forward-looking statements within the meaning of
the United States Private Securities Litigation Reform Act of 1995 with respect
to the Group's financial condition, results of operations and business, and
management's strategy, plans and objectives for the Group. These statements
include, without limitation, those that express forecasts, expectations and
projections with respect to the potential for growth of free-to-air and pay-TV,
fixed line telephony, broadband and bandwidth requirements, advertising growth,
DTH subscriber growth, Multiroom, Sky+ and other services penetration, churn,
DTH and other revenue, profitability and margin growth, cash flow generation,
programming and other costs, subscriber acquisition costs and marketing
expenditure, capital expenditure programmes and proposals for returning capital
to shareholders.
These statements (and all other forward-looking statements contained in this
document) are not guarantees of future performance and are subject to risks,
uncertainties and other factors, some of which are beyond the Group's control,
are difficult to predict and could cause actual results to differ materially
from those expressed or implied or forecast in the forward-looking statements.
These factors include, but are not limited to, the fact that the Group operates
in a highly competitive environment, the effects of laws and government
regulation upon the Group's activities, its reliance on technology, which is
subject to risk, change and development, failure of key suppliers, its ability
to continue to obtain exclusive rights to movies, sports events and other
programming content, risks inherent in the implementation of large-scale capital
expenditure projects, the Group's ability to continue to communicate and market
its services effectively, and the risks associated with the Group's operation of
digital television transmission in the U.K. and Ireland.
Information on some risks and uncertainties are described in the "Risk Factors"
section of Sky's Interim Report on form 6-K for the period ended 31 December
2007. Copies of the Interim Report on form 6-K are available on request from
British Sky Broadcasting Group plc, Grant Way, Isleworth TW7 5QD or from the
British Sky Broadcasting web page at www.sky.com/corporate. All forward-looking
statements in this document are based on information known to the Group on the
date hereof. The Group undertakes no obligation publicly to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
Appendix 1 - Customer and Market Data
Third quarter as at Second quarter as at Third quarter as at
31 March 2008 31 December 2007 31 March 2007
DTH homes(1),(2) (3) 8,888,000 8,832,000 8,492,000
Total TV homes in the U.K. and Ireland(4) 27,156,000 27,093,000 26,837,000
DTH homes as a percentage of 33% 33% 32%
total U.K. and Ireland TV homes
Cable - U.K.(5) 3,532,000 3,478,000 3,386,000
Cable - Ireland 556,000 565,000 566,000
Sky+ homes(6) 3,393,000 3,131,000 2,167,000
Multiroom homes(7) 1,571,000 1,531,000 1,297,000
HD homes 465,000 422,000 244,000
Sky Broadband 1,428,000 1,199,000 457,000
Sky Talk 1,095,000 915,000 355,000
DTT (freeview only) - U.K.(8) - 9,575,000 8,370,000
(1) Includes DTH customers in Republic of Ireland of 548,000 as at 31 March
2008
(2) DTH customers includes only primary subscriptions to Sky (no additional
Sky+ or Multiroom subscriptions are counted). This does not include
customers taking Sky's Freesat offering who do not subscribe to an
additional Sky service or churned customers viewing free-to-air channels
(3) DTH homes include subscribers taking Sky packages via DSL through Tiscali
TV
(4) Total U.K. homes estimated by BARB and taken from the beginning of the
month following the period end (latest figures as at 31 March 2008). Total
Ireland homes estimated by Ireland's Central Statistics Office
(5) Cable subscriber numbers exclude Tiscali TV and the historic comparatives
have been restated to reflect this
(6) Sky+ homes include HD households
(7) Multiroom includes households subscribing to more than one digibox. (No
additional units are counted for the second or any subsequent Multiroom
subscriptions within one household)
(8) DTT homes (Freeview only) estimated by OFCOM. Latest data available is at
31 December 2007. Prior year figures have been restated (previously sourced
from BARB) and relate to unique TV households
Appendix 2 - Glossary
------------------------------------------- ------------------------------------------------------------
Useful definitions Description
------------------------------------------- ------------------------------------------------------------
Adjusted earnings per share Adjusted profit divided by the weighted average number of
ordinary shares during the year.
------------------------------------------- ------------------------------------------------------------
Adjusted operating profit Operating profit before taking account of exceptional
items.
------------------------------------------- ------------------------------------------------------------
Adjusted profit for the period Profit for the period adjusted to remove mark-to-market
movements in derivative financial instruments that do not
qualify for hedge accounting and exceptional items.
------------------------------------------- ------------------------------------------------------------
ARPU Average Revenue Per User: the amount spent by the Group's
residential subscribers in the quarter, divided by the
average number of residential subscribers in the quarter,
annualised.
------------------------------------------- ------------------------------------------------------------
Churn The number of DTH subscribers over a given period that
terminate their subscription in its entirety, net of
former subscribers who reinstate their subscription in
that period (where such reinstatement is within a twelve
month period of the termination of their original
subscription), expressed as a percentage of total
subscribers.
------------------------------------------- ------------------------------------------------------------
Customer A subscriber to a DTH service.
------------------------------------------- ------------------------------------------------------------
DTH Direct-to-home: the transmission of satellite services
with a reception through a mini-dish.
------------------------------------------- ------------------------------------------------------------
EBITDA Earnings before interest, taxation, depreciation and
amortisation is calculated as operating profit before
depreciation and amortisation or impairment of goodwill
and intangible assets.
------------------------------------------- ------------------------------------------------------------
Free cash flow The amount of cash generated by Sky after meeting
obligations for interest and tax, and after all capital
investment and net cash flows relating to our joint
ventures and associates.
------------------------------------------- ------------------------------------------------------------
Gross margin Revenue less programming expenses as a proportion of
revenue.
------------------------------------------- ------------------------------------------------------------
Gross profit Revenue less programming expense.
------------------------------------------- ------------------------------------------------------------
HD High Definition.
------------------------------------------- ------------------------------------------------------------
Multiroom Installation of one or more additional set-top-boxes in
the household of an existing DTH customer.
------------------------------------------- ------------------------------------------------------------
Net debt Cash, cash-equivalents, short-term deposits, net of
borrowings and borrowings related derivative financial
instruments.
------------------------------------------- ------------------------------------------------------------
On-net Customers subscribing to our unbundled broadband product.
------------------------------------------- ------------------------------------------------------------
Product Any service chosen by a Sky customer. These include DTH,
Sky+, Multiroom, Sky HD, Sky Broadband and Sky Talk.
------------------------------------------- ------------------------------------------------------------
Sale A sale is a gross addition of any product.
------------------------------------------- ------------------------------------------------------------
Sky+ Sky's fully-integrated Personal Video Recorder (PVR) and
satellite decoder.
------------------------------------------- ------------------------------------------------------------
Underlying Excluding contribution from Sky Broadband and Talk,
Easynet Enterprise and exceptional items.
------------------------------------------- ------------------------------------------------------------
Viewing share Number of people viewing a channel as a percentage of
total viewing audience.
------------------------------------------- ------------------------------------------------------------
Appendix 3 - Consolidated Financial Information
Consolidated Income Statement for the nine months ended 31 March 2008
2007/08 2006/07
Nine months Nine months
ended ended
31 March 31 March
GBPm GBPm
Notes (unaudited) (unaudited)
Revenue 1 3,706 3,376
Operating expense 2 (3,202) (2,763)
______________________________________________________________________________________________________
EBITDA 684 750
Depreciation and amortisation (180) (137)
______________________________________________________________________________________________________
Operating profit 504 613
------------------------------------------------ ----------- ------------------- ----------------------
Share of results from joint ventures and associates 12 9
Investment income 38 42
Finance costs (127) (108)
Profit on disposal of joint venture 67 -
Impairment of available-for-sale investment (474) -
Profit before tax 20 556
------------------------------------------------ ----------- ------------------- ----------------------
Taxation (138) (168)
(Loss) profit for the period (118) 388
------------------------------------------------ ----------- ------------------- ----------------------
(Loss) earnings per share from (loss) profit for the period (in pence)
Basic (6.8) 22.1
Diluted (6.8) 22.1
______________________________________________________________________________________________________
Adjusted basic 17.0 19.5
Adjusted diluted 16.9 19.5
______________________________________________________________________________________________________
Consolidated Income Statement for the three months ended 31 March 2008
2007/08 2006/07
Three months Three months
ended ended
31 March 31 March
GBPm GBPm
(unaudited) (unaudited)
Revenue 1,248 1,156
Operating expense (1,039) (938)
______________________________________________________________________________________________________
EBITDA 269 264
Depreciation and amortisation (60) (46)
______________________________________________________________________________________________________
Operating profit 209 218
-------------------------------------------------- -------- -------------------- ----------------------
Share of results from joint ventures and associates 4 3
Investment income 19 18
Finance costs (45) (39)
Impairment of available-for-sale investment (131) -
Profit before tax 56 200
-------------------------------------------------- -------- -------------------- ----------------------
Taxation (62) (58)
(Loss) profit for the quarter (6) 142
-------------------------------------------------- -------- -------------------- ----------------------
(Loss) earnings per share from (loss) profit for the period (in pence)
Basic (0.3) 8.1
Diluted (0.3) 8.1
______________________________________________________________________________________________________
Adjusted basic 7.3 8.2
Adjusted diluted 7.2 8.2
______________________________________________________________________________________________________
Notes:
1. Revenue
2007/08 2006/07
Nine months Nine months
ended ended
31 March 31 March
GBPm GBPm
(unaudited) (unaudited)
Retail Subscription 2,808 2,514
Wholesale Subscription 136 162
Advertising 248 258
Sky Bet 35 34
Installation, Hardware and Service 212 167
Other 267 241
3,706 3,376
---------------------------------------------------------- ------------------- ---------------------------
2. Operating expense
2007/08 2006/07
Nine months Nine months
ended ended
31 March 31 March
GBPm GBPm
(unaudited) (unaudited)
Programming 1,295 1,153
Transmission and related functions 395 278
Marketing 569 546
Subscriber management 548 467
Administration 395 319
3,202 2,763
---------------------------------------------------------- ------------------- ---------------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BRITISH SKY BROADCASTING GROUP PLC
Date: 30 April 2008 By: /s/ Dave Gormley
Dave Gormley
Company Secretary