BSkyB cashes in on phone and broadband deals

Satellite broadcaster BSkyB yesterday reported a 32 per cent rise in profits as increasing sales of telephone and broadband packages offset a slowdown in new TV subscriptions.

An additional 26,000 households signed up for its TV services in the three months to 30 September, bringing the total to 10.2 million, but this was down on 100,000 who signed up in the previous quarter.

Underlying profits rose to £327 million as the group benefited from “cross-selling” to existing customers, with strong sales of line rental, telephone and broadband packages. Some 2.9 million customers now take broadband and telephone packages in addition to TV.

Profits were also boosted by a £39m “break fee” paid by Rupert Murdoch’s News Corporation after it was forced to drop its bid to buy the 61 per cent of the company it did not already own following the phone-hacking scandal.

Chief executive Jeremy Darroch said: “In tough market conditions, our move to more broadly-based growth and multiple products is serving us well.

“New customers are choosing Sky over other providers, existing customers are taking more from us.”

But he warned that weak consumer spending was a worry.