BSkyB Earnings, Sales Up On Strong Consumer Demand

29th Jul 2010 07:14

By Lilly Vitorovich Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Takeover target British Sky Broadcasting Group PLC (BSY.LN) Thursday reported solid fourth-quarter earnings and sales, bolstered by the take-up of its high-definition television offer. Chief Executive Jeremy Darroch said it has been a good year for the group, with management now focused on the challenge ahead. "The economic outlook remains uncertain and, against that backdrop, we'll pursue the consistent set of priorities that have served us well so far. Executing on these plans will build a larger, more profitable business for the long term," he said in a statement. Operating profit before exceptional operating costs--a key figure tracked by U.K. media analysts--rose 24% to GBP237 million in the fourth quarter ended June 30 from GBP191 million, slightly ahead of market expectations of GBP233 million. BSkyB, which competes against U.K.-based cable-television and Internet provider Virgin Media Inc. (VMED) and BT Group PLC (BT.A.LN), posted a 13% rise in fourth quarter revenue to GBP1.53 billion from GBP1.36 billion. BSkyB last month received a GBP7.8 billion takeover approach from its biggest shareholder, News Corp. (NWS), but BSkyB's independent directors baulked at its 700 pence a share cash offer. The independent directors want an offer of more than 800 pence a share. News Corp, which owns Dow Jones & Co, the publisher of this newswire and The Wall Street Journal, has a 39.1% stake in BSkyB. BSkyB shares closed at 720 pence Wednesday, valuing the company at GBP12.62 billion. -By Lilly Vitorovich, Dow Jones Newswires; 44-0-207 842 9290; [email protected] (END) Dow Jones Newswires July 29, 2010 02:14 ET (06:14 GMT)