BSkyB reports 3Q loss of $234M after writing off ITV stake
LONDON—British Sky Broadcasting Group PLC on Wednesday reported a loss of $234 million in the third quarter after writing off its stake in commercial broadcaster ITV.
The loss of 118 million pounds compared with a profit of 388 million pounds in the third quarter a year earlier.
Revenue rose 10 percent to 3.7 billion pounds ($7.3 billion).
BSkyB also reported 10 percent gains in revenue and customers for its satellite services during the three months ending 31 March.
The company said it added 56,000 net customers in the quarter to boost its total to nearly 8.9 million. It raised broadband subscriptions by 229,000 to 1.4 million.
BSkyB shares rose 1.3 percent to 547.5 pence ($10.85) on the London Stock Exchange.
The group logged an impairment charge of 474 million pounds ($939 million) related to the stake it took in ITV in 2006. The move was widely perceived to be a blocking strategy against its pay-TV rival NTL Inc. -- now called Virgin Media, after a combination with Richard Branson's Virgin Mobile.
The Competition Appeal Tribunal ruled last year that BSkyB must dispose of more than half its 17.9 percent stake in ITV, and Business Secretary John Hutton subsequently ordered the company to cut its holding to 7.5 percent.
BSkyB has appealed the ruling, and a public hearing before the Competition Appeal Tribunal is scheduled Wednesday.
BSkyB is controlled by Rupert Murdoch's News Corp., which holds a 39 percent stake.
"Average revenues per user, net new subscribers and customer churn are all continuing to move along in the right direction," said Richard Hunter, analyst at Hargreaves Lansdown Stockbrokers.
"Sky's stated aim of 10 million customers by 2010 continues to look eminently achievable, and the success of the broadband offering in little under two years is proof of Sky's ambition and marketing prowess," Hunter said.
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