Sky Profits Jump by 11% on Sports Subscription Demand

Media conglomerate BSkyB reported a decent increase in operating profit on the back of a strong demand for its subscription products.

Operating profit increased by 11% to £316m for the three months leading to 30 September as it managed to muster 760,000 new subscribers for its products, such as satellite television and broadband.

The new subscribers means that BSkyB now has more than six million TV customers in the UK, with the firm stating that "Sky Sports had a very strong quarter" following the launch of Sky Sports 5 – a channel dedicated to European football.

Earnings before interest and tax jumped by 6% to £417m whereas its revenue was also up by the same percentage to £1.9bn.

Jeremy Darroch, Chief Executive, said: "This strong financial performance was fuelled by continued operating momentum. We are seeing broad customer demand for our products whilst opening up new revenue opportunities.

"Three months into the year, we are delivering against a clear strategy for growth in our existing business."

The Rupert Murdoch backed company also says that it is on track to complete the £5.6bn takeover of Sky Italia and Sky Deutschland which it has received regulatory and shareholder approval for.

When the deal is finalised, BSkyB will serve more than 20 million customers around the continent.

Shares in Sky remained relatively stable in early morning trading following the announcement of its results, barely dropping by 1% to 852.00p.