BSkyB adds 62,000 subscribers in latest quarter

BSkyB bettered expectations today after revealing it added 62,000 subscribers in the three months to the end of September.

The performance, which took total direct-to-home customer numbers to more than 7.41 million, was stronger than the average City forecast of 50,000.

However, it still represented a declining trend as growth in the previous quarter stood at 81,000 while BSkyB – headed by Rupert Murdoch’s son James - added 170,000 customers in the same period a year earlier.

The company, which holds its annual meeting in London today, said it remained on track for eight million customers by the end of next year with the pre-Christmas quarter likely to benefit from a current marketing drive.

Revenues over the company’s first quarter grew by 11% on a year earlier to £940m (€1.34bn) with operating profits up 26% at £190m (€271m).

The company added that its Sky+ service, which allows customers to pause live TV and record one satellite programme while viewing another, continued to grow in popularity with the number of users quadrupling in a year to 474,000.

James Murdoch said: “Sky achieved a solid set of results in the first quarter, with good sales and profit growth and we remain in a strong financial position.”

The chief executive recently announced plans for an investment programme designed to meet a target of 10 million subscribers by 2010.

However, the BSkyB board is likely to face criticism from some shareholders today for a bonus scheme that the UK's Pensions Investment Research Consultants (PIRC) said could net Mr Murdoch a payout equivalent to 200% of salary.

As a result, PIRC has recommended investors vote against the company’s remuneration report.

Plans for a share buy-back have also caused disquiet.