Risk return

23 October 2009 By Una Galani Follow @ugalani

The UK payTV operator has demonstrated surprising resilience through the recession, while continuing to invest. The balance sheet is strong, with debt at less than twice its ebitda. Sky should weigh carefully the balance between continued investment and shareholder dividends.

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BSkyB added 94,000 new customers in the first financial quarter, growing its total customer base to 9.5m and edging closer to its 10m target.

The UK payTV operator's revenues were £1.4bn, up 10% on the same period last year. Operating profit increased 9% to £198m as losses from broadband halved to £19m.

However, Sky lost more customers in the quarter with churn rising to 11.3%, from 10% in the previous three months. The broadcaster attributed the decline to higher pricing of its subscriptions and tighter customer debt management.

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