Dividends to return for BSkyB as business booms

British Sky Broadcasting Group (BSkyB) - owner of Sky News - is to resume dividends to shareholders.

The news came as the company revealed a huge rise in first-half earnings.

The group's total revenue increased by 17% to £1,766m (€2,602m), and profit before goodwill and exceptional items rose by 84% to £283m (€417m).

BSkyB had suspended its dividend for several years while it rolled out its digital TV service, but it is now planning an interim dividend of 2.75p (€4.06) per share.

New CEO James Murdoch continued the good news with figures showing the number of Sky+ subscribers had more than doubled to 249,728 for the quarter to 31 December 2003.

The figure judging movement of customers, know as the churn rate held at 9.4%, while average revenue per user (ARPU) rose 5% to £369 (€543.71) .

Rupert Murdoch's News Corporation owns 33% of BSkyB.