BSKyB has plans to buy back its shares

Friday, May 4th 2012

British Sky Broadcasting Group Plc (BSY), the British Satellite broadcasting, broadband and telephony Services Company, has announced that during the nine months ending March, its operating profit has gone up by 20 per cent thanks to the growth in the sale of broadband connections.

The England based company said that the revenue before taxes, interest, amortization and depreciation increased to $1.9 billion during this period and the company was able to get 212,000 new customers during Q3. Currently, BSKyB has more than 10 million customers and as a part of its marketing plans, the firm has increased its efforts to sell more and more bundled packages which include high-definition TV services, internet broadband and telephone services. New Corp. owned by Rupert Murdoch has 39% shares in BSKyB. In March the company has started broadcasting, for the first time, the Formula 1 motor races.

During a conference call, Jeremy Darroch, the Chief Executive Officer said that BSKyB is getting more business than any other company as the customers have full faith in the firm. Even then the company faced recession for about six months out of the first nine months. The London Trading has valued the company at 12 billion Pounds.

BSKyB is at present facing stiff competition in the UK from the US streaming service Netflix Inc. The US firm has started offering TV shows and movies this year and as a counter measure BSKyB has made plans to distribute more substance on mobile phones and games control panels, and to add new programs in their packages. During the first nine months, the sales were increased by 5% touching 5.08 billion Pounds.

A spokesman of BSKyB said that the company has plans to buy back shares worth 750 million Pounds since NWSA (News Corp) deserted a bid worth 7.8 billion Pound for the rest of the company after a scandal with regard to a phone-hacking at a publishing unit belonging to Murdoch. Before the appearance of reports regarding the interception of voice mail of murder victim Milly Dowler by the employees of the News of the World, BSKyB share had gone up to 805 pence. The lawmakers in the UK said the Murdoch is a person unfit for leading a big company like BSKyB as his company has misled the parliament regarding the phone hacking done by now. The report may force the telecoms regulator, Ofcom to disqualify News Corp. as a broadcasting license holder. The regulator may even ask New Corp. to reduce its share in BSKyB. The spokesman of BSKyB said that the issue is being discussed with the regulator and it hopes that company may be allowed to remain a valid broadcasting license holder.

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