A broader product offering, more subscribers and greater operational efficiencies helped media giant British Sky Broadcasting (BSY) deliver solid first-half figures, and shareholders were further rewarded with a hefty dividend hike.
Expanding the product offering has helped attract more subscribers, notably from the inclusion of Formula 1 motor racing coverage for the first time. This comes on top of existing coverage that, this year, will include the Ashes cricket series, the Lions' rugby tour to Australia and the golf Masters from August.
New customers grew by 271,000 year on year to 10.74m and average revenue per user rose by £24 to £568 - albeit assisted by price increases introduced last September. Moreover, subscribers taking the triple-play package (TV, internet and telecoms) grew 17 per cent in the period to 3.6m. With just a third of the total customer base having subscribed for triple-play, there's plenty of headroom for further expansion. Growth in both the retail and wholesale subscription operations was more than enough to offset reductions in the more cyclical businesses - advertising, pubs and clubs.
Broker Numis Securities expects full-year pre-tax profit of £1.22bn, giving EPS of 56.3p (from £1.15bn and 50.4p in 2012).
| BRITISH SKY BROADCASTING (BSY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 821p | MARKET VALUE: | £13.3bn | |
| TOUCH: | 821-822p | 12-MONTH HIGH: | 832p | LOW: 629p |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 47p* | NET DEBT: | 156% | |
| Half-year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 3.36 | 597 | 25.3 | 9.20 |
| 2012 | 3.53 | 642 | 29.7 | 11.0 |
| % change | +5 | +8 | +17 | +20 |
Ex-div: 27 Mar Payment: 23 Apr *Includes intangible assets of £1.53bn, or 94p a share | ||||
