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Sky Q3 results show 155,000 increase in broadband users
Thursday 28 April 2011 10:52:46 by John Hunt

Sky have announced their financial results for the quarter covering January to March 31st 2011 showing that the company have had strong growth. Last time around, the company broke through the 10 million customer mark, and this has now grown to 10.15 million. 3.2 million of these take broadband with the company adding 155,000 connections in the quarter. 26% of all Sky customers are now on a triple-play package of TV, broadband and telephone. HD is also in strong demand with 3.7 million customers now opting for this, showing a near 50% increase over the last 12 months.

"At a time of significant pressure on household budgets, we have added over 800,000 subscription products as more customers choose Sky for a greater variety of services. Take-up of high definition remains very strong and we have had another excellent quarter in home communications, with 26% of customers saving money by taking all three of TV, broadband and home phone.

The strength of our financial performance has been equally broadly based, with good revenue growth across retail, wholesale and advertising. Strong cost control and continued margin expansion has delivered 24% growth in operating profit and free cash flow is up 60%.

Customers are choosing Sky for a better choice of television and 2011 is shaping up to be our best year yet on screen. Our new channel, Sky Atlantic, has got off to an excellent start with 10 million viewers in the first two months. Alongside Sky 1 and Sky Living, it forms part of an outstanding entertainment line-up that will bring even more value to customers in the months ahead, including a growing commitment to UK drama and comedy."

Jeremy Darroch, (Chief Executive) BSkyB

Overall, Sky profits were up 5% to £261 million. This was with an 8% rise on the average revenue per user (annualised based on the most recent quarter), pushing this to £544 or £45.33 per user per month.


Posted by undecidedadrian over 6 years ago
Do they break down how many of these new connections are LLU? As the majority of Sky BB customers are on the awful connect product.
Posted by mitchja over 6 years ago
Sky are still rolling out LLU at a reasonable rate. My exchange has only recently got Sky/Easynet LLU.

I switched everything over last month and I've not looked back since. Fantastic service from Sky :-)
Posted by andrew (Favicon staff member) over 6 years ago
On what basis are people assuming the majority are on the connect product?

Connect is IPStream based, and is NOT the free 2GB a month service, which is LLU based.
Posted by herdwick over 6 years ago
How many did Virgin acquire again ? LOL.
Posted by camieabz over 6 years ago
"Overall, Sky profits were up 5% to £261 million. This was with an 8% rise on the average revenue per user (annualised based on the most recent quarter), pushing this to £544 or £45.33 per user per month."

Over the past three years we've slowly downgraded our package to avoid a price increase. We refuse to pay for movies and sports now. Far too expensive for the service provided.
Posted by New_Londoner over 6 years ago
Completely agree - the 20k net new customers added seemed remarkably low, these results confirm it!

Whilst it is still difficult to know whether the number of customers for Virgin's 50Mbps service is good or not, I imagine that their senior execs will be waiting to hear BT's numbers with some concern, and will need to show a healthy lead given their earlier start. If not, their steady loss of market share to Sky, BT etc will be a real worry.
Posted by undecidedadrian over 6 years ago

Your own news item here states how many Sky customers are on LLU and IPstream

So Sky still have the vast majority of their customers not on their LLU equipment I was wondering how many of the new sign ups are on LLU.
Posted by adebov over 6 years ago
They'd have had at least one more if BT hadn't lied about when FTTC would arrive (the original BT dates made it pointless in migrating to Sky). A conspiracy theorist might say this was a deliberate act (by BT).
Posted by Dixinormous over 6 years ago
As far as I know that news item refers to the punters on the combined voice and broadband SVBN. Majority of Sky's customer base are merrily on LLU, be it the previous SMPF or the newer SVBN.
Posted by undecidedadrian over 6 years ago

Actually Sky is now quoting 3.2 million BB customers. Last quater they quoted just over 3 million with 1.2 million on LLU and the rest are on Connect.

So given that there is no more detailed breakdown all I can assume is that the new numbers quoted are not all LLU but most likely a very high amount of Connect customers.
Posted by adebov over 6 years ago
@ undecidedadrian

Sky are still continuing their LLU exchange roll-out (albeit at a stupidly low rate) and are pushing hard in those areas so it's always possible a fair few of the new customers are LLU (along with a reasonable amount switching from connect to LLU as it becomes available).
Posted by otester over 6 years ago

I'd expect they have level of demand that must be met before they will do it.

My exchange doesn't have them, yet a smaller exchange near me does...
Posted by adebov over 6 years ago
@ otester

I doubt that's the only criteria.
Our exchange (over 20,000 lines) in an affluent town has only just been enabled and has no cable TV in the area (so Sky have no competition for 'real' multi-channel TV - Ergo; there must be a pretty high take-up of SkyTV).
Yet; two much smaller neighbouring exchanges, one of which has cable TV, have had unbundled Sky broadband for over four years.

So; there must be more to it than just demand level.
Posted by Dixinormous over 6 years ago
@Undecidedadrian I'll repeat that I'm pretty sure that refers to the SVBN.

Sky's LLU network passes about 75% of homes. Would be quite odd for them to have less than 40% of their broadband customers within that 75% of the country especially given they migrate customers to SMPF / SVBN when they enable exchanges.
Posted by undecidedadrian over 6 years ago
The last year figure broke down 3 million customers as 1.2 million LLU and just over 1.8 million IPstream customers.

one quater later they are quoting an increase of 155k connections to a total of 3.2 million connections.

Consistant with the last year figures but this time they don't want to break down the figures.

All I can assume that they want to pretend they have better LLU numbers as it seems to have been a mistake publishing the spilt showing that their LLU base is still quite small.
Posted by Dixinormous over 6 years ago
I don't see anything in the last year figures giving that number. I see a reference to people on fully unbundled connections but have looked at last year's report and can't see this number. Where did it appear?
Posted by undecidedadrian over 6 years ago
The figures were quoted here.

"The total customer base stands at 10.1 million with over 3 million of those taking a broadband connection and 1.2 million of these are connected to Sky's unbundled network (LLU)."
Posted by Dixinormous over 6 years ago
I'm aware of those, that's the same link you mentioned before, I'm looking for something from Sky themselves and cannot find anything, I can only find references within annual and investor reports referring to *fully* unbundled lines.
Posted by Dixinormous over 6 years ago
OK confirmed with Sky - didn't have exact figures but the number of people on Connect is in the hundreds of thousands, not millions - TBB as I thought were mistaken and gave numbers for the SVBN.
Posted by chrysalis over 6 years ago
got to love how the customer count is the headline instead of the much more important profit figure ;)
Posted by gmegson over 6 years ago
I believe Sky are using thier anytime+ (the 'free' VOD service) service campaign to increase subscriptions to thier broadband service. If you look at the advertising for anytime+ you can only get it if you are on sky broadband. When asked why they are unable to offer it to other boardband users they quote quality issues and QoS problems. Interestingly these don't impact Sky Player or BBC iplayer or 4OD or ITV player.......

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