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British Sky Broadcasting Group Interim Results

MIDDLESEX, UK -- (Marketwire) -- 01/31/13 --




                 BRITISH SKY BROADCASTING GROUP PLC
     Unaudited results for the six months ended 31 December 2012


    GOOD PROGRESS ON STRATEGY DELIVERING STRONG FINANCIAL PERFORMANCE



                    Adjusted results (GBP)      Reported results (GBP)

Half year          2012/13  2011/12  Variance  2012/13  2011/12 Variance

Revenue            3,533m   3,364m    +5%      3,533m   3,364m  +5%

EBITDA             813m     772m      +5%      845m     803m    +5%

Operating profit   647m     601m      +8%      679m     632m    +7%

Earnings per share 28.3p    24.0p     +18%     29.7p    25.3p   +17%
(basic)

Dividend per share 11.00p   9.20p     +20%     11.00p   9.20p   +20%


Further strong financial performance and increased returns to
shareholders

* Revenue up 5% to GBP3,533m
* Adjusted operating profit up 8% to GBP647m
* Adjusted basic earnings per share up 18% to 28.3 pence
* Interim dividend up 20% to 11.0 pence

Multi-product strategy delivering good operational growth

* Subscription product growth of 615,000 in Q2
* Total subscription product base of 29.5 million, up 10% year on
year
* Triple-play penetration of 33%, up 4pp year on year
* 88,000 new customers added in Q2 to reach 10.74 million, up
271,000 year on year
* ARPU of GBP568, up GBP24 year on year

Customers responding positively to our content and products

* New services driving increased viewing - weekly On Demand
downloads up 150% in Q2; Sky Go users increased 46% year on year to
reach 3.1 million
* Standout performance from Sky Sports - record audiences for Ryder
Cup and US Open tennis, and over 9 million viewers to first season of
Sky Sports F1 channel

Continued excellent progress in cost initiatives and efficiency
improvements

* Adjusted other operating costs as percentage of sales reduced by
200 basis points


Results highlights

Customer Metrics (unaudited)

                          As at     As at     Annual  Quarterly Growth
                          31-Dec-12 31-Dec-11 Growth  to 31-Dec-12


Products ('000s)
 TV (DTH and NOW TV)      10,358    10,253    +105    +50
 HD                       4,561     4,063     +498    +93
 Multiroom                2,467     2,350     +117    +44
 Broadband                4,235     3,651     +584    +132
 Telephony                4,022     3,407     +615    +134
 Line rental              3,870     3,106     +764    +162
Paid-for subscription     29,513    26,830    +2,683  +615
products


 Connected Sky+HD boxes   1,715     442       +1,273  +460
 Sky Go unique users      3,066     2,107     +959    +298

Total Customers           10,742    10,471    +271    +88

Paid-for products per
customer                  2.7       2.6Other metrics
Customers taking each of
TV, broadband & talk      33%       29%
ARPU (2)                  GBP568    GBP544      +GBP24    +18
Churn (2)                 10.3%     9.6%

An additional KPI summary table containing further detailed disclosure
can be found in Schedule 1.

Business Performance (1)(unaudited)
GBP'millions                     6 months to  6 months to
                                   31-Dec-11    31-Dec-12  Movement
Revenue                                3,533       3,364       +5%
Adjusted operating profit                647         601       +8%
% Adjusted operating profit margin      18.3%      17.9%       +40bps
Adjusted profit before tax                610        564       +8%
Adjusted basic earnings per              28.3       24.0       +18%
share (3)

(1) A reconciliation of adjusted operating profit and adjusted EBITDA to
reported measures as well as cash generated from operations to adjusted
free cash flow is set out in Appendix 2.

(2) Quarterly annualised.

(3) Adjusted basic EPS is calculated from adjusted profit for the
period. A reconciliation of reported profit to adjusted profit is set
out in note 4 to the condensed consolidated interim financial
statements.


Jeremy Darroch, Chief Executive, commented:"We have delivered another good
performance in the first half with
strong progress across the board. In what remains a tough consumer
environment, our broadly-based growth strategy is working well. Good
product growth in the quarter means that our total base of subscription
products has grown by 10% year on year."During the half, we have invested
in providing the best service to our
customers while continuing to drive greater operational efficiency. We
strengthened our content offering, extended our leadership in customer
technology and continued to lead the industry in customer service."As a
result, more households are joining Sky, our existing customers
are staying loyal and they are choosing to spend more with us. In
particular, we have seen a strong response to new services like On
Demand and Sky Go which increase customer satisfaction and loyalty and
will provide important sources of future growth."Together with our
continued focus on cost control and efficiencies,
this has delivered another excellent financial performance and
increased returns to shareholders. We grew earnings per share by 18% in
the first half and have increased the interim dividend by a further 20%
to 11 pence."Although we expect the consumer environment in 2013 to remain
challenging, we have a strong set of plans for the year ahead. We will
keep getting better on screen, further improve our products and
services for customers and maintain our focus on efficiency. The
business is in good shape to continue to deliver for customers and
shareholders."

SUMMARY OF OPERATIONAL AND FINANCIAL PERFORMANCE

The business performed well in the first half as we invested in
providing the best possible service to customers while further
improving the efficiency of our operations. We continued to get better
on screen with new rights deals and original commissions; we maintained
our leadership in customer technology with rapid adoption of new
products that enhance the viewing experience and make it easier for
customers to access our content when and where they choose; and we
continued to improve the quality and efficiency of our customer service
operations.

This approach delivered a good operating performance and strong
financial results. In a tough economic environment, more customers are
taking more products and spending more money with Sky. In the three
months to 31 December 2012, we added 615,000 new products, taking the
total base to 29.5 million, up 10% year-on-year. Meanwhile, we added
88,000 new customers to reach a total of 10.7 million.

In TV, we added 50,000 new customers in the quarter. Of these, 25,000
are subscribers to our new internet TV service NOW TV, which benefited
from our first above-the-line marketing campaign in the autumn. We are
set to launch sport on NOW TV later this year following beta testing
which started in December.

Customers now take an average of 2.7 products from us. This increased
penetration of products, combined with a price rise in September, our
first for two years, grew ARPU to GBP568, a GBP24 increase on the previo
us year. Quarterly annualised churn was 10.3%.

We delivered another strong quarter in home communications as we
continue to outpace the rest of the market. Over the quarter, we added
132,000 new broadband customers, of which 38,000 were new standalone
customers, to take our total customer base to 4.2 million. Meanwhile,
our telephony customer base passed the four-million mark for the first
time with the addition of 134,000 customers. As a result, we closed the
quarter with 3.6 million triple-play customers, up 17% on last year.
With 33% triple-play penetration, we see good headroom for futher
growth with over six million TV customers yet to switch their
communications services to Sky.

Our operating performance converted into a good financial performance
for the first half. The combination of 5% revenue growth and good cost
control delivered an 8% improvement in adjusted operating profit of
GBP647 million, and expanded the adjusted operating margin to 18.3%.
Adjusted basic earnings per share grew by 18% to 28.3 pence. On the
back of the strong financial performance, the Directors have declared
an interim dividend of 11.00 pence per share, an increase of 20% year
on year.

Getting better on screen

We made good progress on screen in the quarter as we continue to
strengthen our content business. We continue to see new record audience
figures across our channel portfolio, we are bringing outstanding new
talent to Sky with new commissions, and we are seeing ever-increasing
levels of customer satisfaction.

Within this, Sky Sports delivered a standout performance. Viewing was
up 9% in the quarter, building on a year that has seen record audiences
in key events including the Ryder Cup and US Open tennis. In its debut
season, the Sky Sports F1 channel reached more than nine million
viewers while Sky Sports on Sky Go, our mobile TV service, continues to
grow in popularity, registering a record 234,000 unique users for live
coverage of the Manchester derby in December.

We have made good progress in securing our portfolio of sports rights.
We have signed 21 deals in the last 12 months meaning that 90% of our
sports rights are now secured for the next three years. Today we have
announced three brand new deals for live rugby union which will give
viewers live coverage of Ireland's Guinness Series together with France
and Italy's Autumn Internationals. We also have an outstanding series
of events coming up on Sky Sports this year including the Ashes home
and away, the Lions' tour to Australia and the Masters from Augusta - a
fantastic line-up for customers.

Meanwhile, our Sky Movies experience continues to get better. Our Sky
Movies 007 channel, which launched in October and ran initially for one
month, was a huge success attracting more than 5 million viewers. With
an increasing number of our movies customers now with connected set-top
boxes, we are also seeing a strong response to the choice we offer
through our On Demand service. Total movie downloads across al

l
platforms doubled year on year to over 30 million in Q2 boosted by Sky
Movies 007. We further strengthened our movies offering with the
announcement today of a new multi-year agreement with Sony. This
follows two other major renewals, with Warner Bros and NBCUniversal, in
the first half.

Our portfolio of entertainment channels is resonating strongly, with
Sky Living, Sky Atlantic and Sky 1 all in the top five 'must have' pay
channels for customers. The success of our strategy to grow investment
in original British content has delivered a 70% increase in hours of
original-commissioned programming in the first half compared to last
year. We also saw 13 returning series in the half including'Strikeback' and
'Spy'. We are putting a growing focus on original
drama with some outstanding talent set to appear on Sky channels over
the coming year including Dominic Cooper, Vanessa Redgrave and Idris
Elba. As well as bringing customers a better choice of television, we
will seek to monetise this growing content pipeline through our
international programme sales and production company, which we acquired
in the summer and rebranded as Sky Vision in October.

Extending leadership in customer technology

We strengthened our leadership in customer technology over the quarter
with growing take-up and usage of On Demand and Sky Go, services that
add value for customers by offering more choice and flexibility in the
way they can access Sky's content.

The proportion of Sky households with fully-connected HD set-top boxes
continues to grow. Just under half a million boxes (460,000) were
activated in the quarter, taking the total number of connected boxes to
1.7 million. We expect to maintain good growth in this area in 2013.

The growth in the number of connected boxes, combined with the launch
of Catch Up TV and the addition of BBC iPlayer, ITV Player and Demand
Five, drove a marked increase in the usage of our On Demand service.
Average weekly downloads more than doubled in the quarter from 1.8
million to 4.4 million by the end of December - more than four times
the number of downloads 12 months earlier - with Sky content accounting
for more than 50% of the downloads. The growth in connected boxes also
led to an increase in the number of transactions through Sky Store,
with total movie transactions surpassing 3 million in the quarter, up
25% year on year.

We continue to expand the availability of Sky Go, extending it to an
additional 17 Android devices including the best-selling Samsung Galaxy
S3 and the HTC One. This roll-out to new devices, combined with the
addition of more live and on demand entertainment content, helped the
service to reach 3.1 million unique users in the quarter, up 46% year
on year. Stand-out successes in the quarter included 'An Idiot Abroad'
Season 3 which attracted more than 850,000 on-demand views across the
series. We will start to monetise this success in 2013 with the launch
of Sky Go Extra, which, for an additional GBP5 a month, offers customers
the added flexibility of registering up to four devices per account
(two more than currently) and downloading content to watch offline.

We are also developing new ways to distribute our content to customers
with NOW TV, our new internet TV service. We continued to build
awareness of the service, which currently provides access to Sky
Movies, with the launch of a new marketing campaign in the quarter,
registering 25,000 monthly pass customers at the end of December. We
plan to develop NOW TV further with the launch of Sky Sports later this
year, following a beta test of the service which started in December.
Under the new offer, customers will get unlimited access for a 24-hour
period to the full range of sports that we offer over all six Sky
Sports channels for just GBP9.99.


Improving service delivery and operational efficiency

Greater operational efficiency across the organisation continues to
deliver the dual benefits of improved customer service and cost savings
for the business. The improvements are driving greater customer
satisfaction and at the same time give us increased capacity to invest
more in the areas where customers see most value.

Market-leading customer service remained a key area of focus in the
quarter. Over 70% of our customers now have our most reliable Sky+HD
box, driving down annualised service rates by almost 90% versus four
years ago. This has contributed to the lowest level of service visits
in eight years, despite a 41% increase in the number of customers over
that period. Improvements in service reliability have also led to a 15%
reduction year on year in total calls to our contact centres.
Meanwhile, improvements in our customer website have helped drive a 50%
year-on-year increase in automated transactions. We expect to see
further reductions in customer interactions following the introduction
of our new 'Sky Hub' router in October, which provides additional
capabilities to diagnose and fix faults remotely.

As part of our drive to improve further the efficiency and
effectiveness of our home service operation, we have agreed a deal to
bring around 700 engineers that work for our outsource partner, AVC,
in-house as Sky employees later in 2013. This will give us one
integrated nationwide team of engineers all working under a single set
of processes. We have also this month opened a new contact centre in
Ireland where we are creating 900 new jobs to help us better serve our
Irish customers.

Our initiatives on service delivery helped Sky to come top in Ofcom's
Customer Service Satisfaction survey in December 2012 across all three
of fixed telephony, broadband and pay TV. We also received recognition
of our leading service from the consumer group, uSwitch, winning four
awards for best technical support, best customer service, most
recommended broadband and best pay TV provider.

Broader Contribution

In December, we announced that Olympic gold medalist Jessica Ennis has
become one of our inspirational ambassadors for Sky Sports Living for
Sport, our free initiative to help improve confidence and attitudes to
learning among secondary school children through sports participation.
The project is reaching more young people than ever with over 1,000
schools taking part since September, a four-fold increase over the same
time last year.

Sky Skills Studios, our free learning experience for young people to go
behind the scenes at Sky, has received over 3,500 visitors since launch
in September. It is getting great feedback from teachers and children
alike, and we expect to reach over 10,000 young people across the year.

We also continue to invest in the Arts, both on air and in the
community. The first of our Sky Arts Ignition Series where we
collaborate with major arts organisations and artists to create new
works, Sky Arts Ignition: Doug Aitken - The Source, continued at Tate
Liverpool attracting over 50,000 visitors by the time it closed in mid
January.We have just announced the second of our Sky Arts Ignition
Series projects, the development of an exhibition called Sky Arts
Ignition: Memory Palace in partnership with the V&A which will open to
the public in June.


DETAILED FINANCIAL PERFORMANCE

We continue to deliver a strong financial performance. First half
revenue growth of 5% and good discipline in keeping adjusted other
operating costs flat helped to deliver adjusted operating profit growth
of 8% to GBP647 million, and adjusted basic earnings per share of 28.3p,
up 18%. Unless otherwise stated, all figures and growth rates included
below exclude exceptional items. Exceptional items are discussed on
page 9 and in Appendix 2.

Revenue

Group revenue increased by 5% to GBP3,533 million (2012: GBP3,364 millio
n), with growth in both retail and wholesale operations more than
offsetting reductions in the more cyclical businesses in advertising
and pubs and clubs.

Retail subscription revenue grew by 5% to GBP2,907 million (2012: GBP2,7
64 million), reflecting continued product and customer growth and the
benefit of price increases which came into effect in September. The
strong performance in retail more than offsets a first half decline in
Sky Business revenues (pubs and clubs) which continue to face cyclical
headwinds; although recent performance has shown signs of recovery.

We delivered a strong performance in wholesale subscription revenue
which increased by 14% to GBP194 million (2012: GBP170 million) as we
continue to benefit from greater take-up of our premium channels and
their HD versions on other platforms, together with the launch and
success of our dedicated Formula 1 channel.

Advertising revenue improved on the previous quarter to be down just 3%
for the period at GBP215 million (2012: GBP222 million). We continued to
increase our market share to reach 21%, with the majority of this
growth underpinned by increased ratings for our media partner channels,
with whom we share revenue upside.

Installation, hardware and service revenue of GBP47 million was lower
year-on-year (2012: GBP51 million) due to lower acquisition volumes and
our work on product reliability and right-first-time installation
rates.

Other revenue increased by 8% to GBP170 million (2012: GBP157 million) d
ue to continued strong performance from Sky Bet which saw an increase in
unique users in the period, and the international programme sales
revenue generated by Sky Vision.

Direct Costs

Programming costs increased by GBP113 million (10%) to GBP1,222 million
(2012: GBP1,109 million) in line with our expectations. Sports accounted
for GBP48 million of the increase which was predominantly due to the
inclusion of Formula 1 and Ryder Cup rights not in the prior year
together with the England and Sri Lankan cricket tours to India and
Australia respectively. Movie costs increased GBP23 million year-on-year
and included investment in expanded rights agreements to support new
product offerings such as Sky Go Extra. Entertainment accounted for GBP3
0 million of the increase as we continued to invest in new and exclusive
UK-commissioned content across our channel portfolio.

Our work on network efficiency within our communications business
resulted in excellent operating leverage in direct network costs, up
only 4% to GBP348 million (2012: GBP336 million) despite a 19% increase
in home communications products.


Other Operating Costs

We continued to focus on costs and once again delivered a strong
performance, holding other operating costs flat in absolute terms
year-on-year and generating a 200 basis point reduction of costs as a
percentage of sales.

Marketing costs were flat at GBP541 million (2012: GBP541 million) with
lower cost route-to-market sales and lower acquisition volumes
offsetting the cost of Sky+ and On Demand campaigns in the period and
the marketing support for the launch of NOW TV.

Subscriber management and supply chain costs were also held flat at
GBP323 million (2012: GBP323 million) as we continue to benefit from
lower service and repair costs as a result of deeper penetration of our
most reliable Sky+HD box. We also generated savings from receiving fewer
calls into the call centres as we focus on getting it right first time
together with increased utilisation of the online self-help options.

Transmission, technology and fixed network costs were down 1% at GBP193
million (2012: GBP194 million) as favourable renegotiation of supplier
contracts offset the modest incremental cost of the Formula 1 channel
transmission. Administration costs were held flat at GBP259 million
(2012: GBP260 million).

Exceptional Items

Reported operating profit of GBP679 million includes an exceptional gain
of GBP32 million within direct network costs relating to a credit note
received from BT following an Ofcom determination which requires BT to
repay monies to Sky for overcharged-for Ethernet services (backhaul)
between 2006/07 and 2009/10. Ofcom's determination may be appealed in
the Competition Appeal Tribunal. Subject to the outcome of any such
appeal, we intend to ensure that our customers benefit from this
decision by spending the majority of this on a one-time basis in
customer-facing areas of the business in the second half of the year.

Reported profit after tax of GBP487 million (2012: GBP441 million)
includes an GBP8 million charge relating to the tax effect on
exceptional items andgenerated reported basic earnings per share of
29.7 pence (2012: 25.3 pence). Please refer to Appendix 2 for a
detailed reconciliation of reported and adjusted numbers.

Cash generated from operations

Adjusted free cash flow was 3% lower at GBP482 million (2012: GBP495
million) reflecting growth in adjusted EBITDA, lower interest and tax
payments and lower capital expenditure, offset by a negative working
capital variance as a result of increased commissioning of
entertainment content and scheduling of payments for renewed sports
rights deals.

Capital expenditure of GBP207 million (2012: GBP237 million), was lower
in the first half due to phasing in the comparative year; specifically,
the autumn 2011 completion of the fit-out of Sky Studios and the
acceleration of our exchange roll-out programme.

Net debt increased to GBP1,201 million (2012: GBP615 million) primarily
as a result of the approved share buy-back and 2011/12 final dividend.
During the period, the Group took advantage of historically low pricing
to raise $800 million from the issuance of guaranteed notes, maturing
in November 2022 and with a 3.125% coupon. The Group's liquidity and
headroom remain comfortable. For a reconciliation of net debt see
Appendix 2.

Distribution to Shareholders

The Directors have declared an interim dividend of 11.00 pence per
share (2012: 9.20p) representing an increase of 20% and the ninth
consecutive year of an increase in the interim dividend for
shareholders. As previously stated, our intention is to maintain a
policy of paying out 50% of full year adjusted earnings as dividends
with the final dividend payment typically forming the higher proportion
of the total dividend. The ex-dividend date will be 27 March 2013 and
the dividend will be paid on 23 April 2013 to shareholders of record on
2 April 2013.

At the Company's AGM on 1 November 2012, Sky received shareholder
approval to return a further GBP500 million of capital to shareholders
via a share buy-back programme. For the six months to 31 December 2012,
the Company repurchased for cancellation 54.8 million shares for total
consideration of GBP414 million, partly pursuant to the GBP750 million
authority approved at the 2011 AGM and partly under the new GBP500
million share buy-back programme. The closing share count at the end
of the quarter was 1,620 million.


CORPORATE

Board changes

The Company announces that Tom Mockridge resigned as a non-executive
director and Chase Carey has been appointed a non-executive director of
the Company on 30 January 2013. Mr Carey is currently the Deputy
Chairman and Chief Operating Officer of News Corporation and serves on
the supervisory board of Sky Deutschland AG. He was formerly President
and Chief Executive Officer of DIRECTV, Inc and served on the Board of
BSkyB as a non-executive director of Sky from 13 February 2003 to 10
February 2009.

Competition Appeal Tribunal (CAT)

On 8 August 2012, the Competition Appeal Tribunal (the "CAT") issued
its judgment in the appeals against Ofcom's decision to impose
wholesale must-offer obligations on Sky (the "Pay TV Judgment"). The
CAT found that Ofcom's core competition concerns were unfounded and
that accordingly Sky's appeal must be allowed. In November 2012, BT
submitted a request to the CAT for permission to appeal the Pay TV
Judgment to the Court of Appeal. If denied by the CAT, BT can apply to
the Court of Appeal directly for permission. The CAT has listed an oral
hearing for 6 February 2013 to determine how to dispose of the case,
including dealing with setting aside the wholesale must-offer ("WMO")
obligations, the monies paid by relevant wholesale customers into
escrow on an interim basis (being the difference between the maximum
price Sky may charge for Sky Sports 1 and Sky Sports 2 under the WMO
obligations and Sky's rate card prices for the channels) and costs.
The CAT will also determine the effect (if any) of any ongoing appeal
by BT.

At 31 December 2012, GBP27 million of cash is being held in the escrow
account.


Enquiries:

Analysts/Investors:

Edward Steel                    Tel:  020 7032 2093
Lang Messer                     Tel: 020 7032 2657

E-mail: [email protected]


Press:

Alice Macandrew                 Tel: 020 7705 3000
Stephen Gaynor                  Tel: 020 7705 3000

E-mail: [email protected]


There will be a presentation for analysts and investors at 9.00 a.m
(GMT) at Allen & Overy, One Bishops Square, London, E1 6AD. CEO, Jeremy
Darroch and CFO, Andrew Griffith, will present. Participants should
register by contacting Camilla Regan on +44 20 7251 3801 or at
[email protected].

There will be a separate conference call for US analysts and investors
at 10.00 a.m. (EST). To register for this please contact Dana Diver at
Taylor Rafferty on +1 212 889 4350. Alternatively you may register
online by using the following link
http://invite.taylor-rafferty.com/_bskyb/2013Q2CC/Default.htm .

A live webcast of the UK and US call will be available to analysts and
investors via the BSkyB website at http://www.sky.com/corporate.
Replays will be subsequently available.

Schedule 1 - KPI Summary



All figures
(000)
                FY10/11                 FY11/12             FY12/13
unless
stated

           Q2     Q3     Q4     Q1     Q2     Q3     Q4     Q1     Q2


Total    10,150 10,223 10,294 10,371 10,471 10,549 10,606 10,654 10,742
customers


         10,096 10,147 10,187 10,213 10,253 10,268 10,288 10,308 10,333
 Television
 NOW TV       -      -      -      -      -      -      -      -     25
 Sky+HD   3,497  3,686  3,822  3,925  4,063  4,222  4,343  4,468  4,561
 Multi-
 room     2,219  2,237  2,250  2,295  2,350  2,378  2,402  2,423  2,467
 Broad-
 band     3,006  3,161  3,335  3,485  3,651  3,863  4,001  4,103  4,235
 Tele-
 phony    2,757  2,916  3,101  3,248  3,407  3,627  3,768  3,888  4,022
 Line     2,215  2,444  2,680  2,892  3,106  3,376  3,563  3,708  3,870
 Rental

Total
paid-for 23,790 24,591 25,375 26,058 26,830 27,734 28,365 28,898 29,513
subscription
products


Connected                        204    442    604    995  1,255  1,715
HD boxes

Sky Go                         1,625  2,107  2,607  2,740  2,768  3,066
unique users

Total                         27,887 29,379 30,945 32,100 32,921 34,294
Products

Other
metrics

Triple-
play %      24%    26%    27%    28%    29%    31%    32%    33%    33%

ARPU(GBP)GBP536 GBP537 GBP538 GBP535 GBP544 GBP546 GBP548 GBP550 GBP568

Churn      9.5%  10.4%  10.4%  11.1%   9.6%  10.1%   9.9%  10.9%  10.3%

Fixed
Network
Metrics
On-net
base      2,659  2,856  3,045  3,205  3,403  3,636  3,778  3,882  4,031
 MPF base 1,247  1,435  1,686  1,869  2,146  2,423  2,588  2,762  2,926
 SMPF
 base     1,412  1,421  1,359  1,336  1,257  1,213  1,190  1,120  1,105

 MPF %      47%    50%    55%    58%    63%    67%    69%    71%    73%
 SMPF %     53%    50%    45%    42%    37%    33%    31%    29%    27%

Off-net
base        347    305    290    280    248    227    223    221    204

Total     3,006  3,161  3,335  3,485  3,651  3,863  4,001  4,103  4,235
Broadband

On-net %    88%    90%    91%    92%    93%    94%    94%    95%    95%

Total no.
of
LLU       1,434  1,549  1,577  1,732  1,907  1,964  1,965  2,036  2,108
exchanges


Related Party Transactions

Details of transactions with related parties during the six month
period to 31 December 2012 are provided in Appendix 1.

Principal risks and uncertainties

A summary of the Group's principal risks and uncertainties is provided
in Appendix 3.

Responsibility statement

The directors confirm that to the best of their knowledge:

* The unaudited condensed consolidated interim financial
statements have been prepared in accordance with IAS 34 as adopted by
the EU.

* The interim management report includes a fair review of the
information required by DTR 4.2.7R and DTR 4.2.8R of the Disclosure and
Transparency Rules.

The directors of British Sky Broadcasting Group plc are listed on pages
40-41 of the 2012 Annual Report. At the Company's AGM on 1 November
2012 Jacques Nasser retired from the Board and on 30 January 2013 Tom
Mockridge retired from the Board. On 16 November 2012 Dave Lewis was
appointed to the Board as an Independent Non-Executive Director and on
30 January 2013 Chase Carey was appointed to the Board as a
Non-Executive Director.


By order of the Board
Jeremy Darroch
Chief Executive Officer

Use of measures not defined under IFRS

This press release contains certain information on the Group's
financial position, results and cash flows that have been derived from
measures calculated in accordance with IFRS. This information should
not be read in isolation from the related IFRS measures.

Forward looking statements

This document contains certain forward looking statements with respect
to the Group's financial condition, results of operations and business,
and our strategy, plans and objectives for the Group. These statements
include, without limitation, those that express forecasts, expectations
and projections, such as forecasts, expectations and projections in
relation to new products and services, the potential for growth of
free-to-air and pay television, fixed line telephony, broadband and
bandwidth requirements, advertising growth, DTH and OTT customer
growth, On Demand (previously Anytime+), NOW TV, Sky Go, Sky+HD and
other services penetration, revenue, administration costs and other
costs, advertising growth, churn, profit, cash flow, products and our
broadband network footprint, content, wholesale, marketing and capital
expenditure and proposals for returning capital to shareholders.

Although the Company believes that the expectations reflected in such
forward looking statements are reasonable, these statements are not
guarantees of future performance and are subject to risks,
uncertainties and other factors, some of which are beyond our control,
are difficult to predict and could cause actual results to differ
materially from those expressed or implied or forecast in the forward
looking statements. These factors include, but are not limited to,
those risks that are highlighted in the document in Appendix 3 -"Principal
risks and uncertainties."

All forward looking statements in this document are based on
information known to the Group on the date hereof. The Group undertakes
no obligation publicly to update or revise any forward looking
statements, whether as a result of new information, future events or
otherwise.

Glossary of Terms

A glossary of terms is included within the Annual Report and on our
corporate investor relations web page at http://corporate.sky.com/
investors/glossary. Copies of the Annual Report are available from the
British Sky Broadcasting Group plc web page at www.sky.com/corporate
and in hard copy from the Company Secretary, British Sky Broadcasting
Group plc, Grant Way, Isleworth, Middlesex TW7 5QD.

Click on or paste the following link into your web browser to view
associated PDF document.

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@ThingsExpo Stories
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
There will be 50 billion Internet connected devices by 2020. Today, every manufacturer has a propriety protocol and an app. How do we securely integrate these "things" into our lives and businesses in a way that we can easily control and manage? Even better, how do we integrate these "things" so that they control and manage each other so our lives become more convenient or our businesses become more profitable and/or safe? We have heard that the best interface is no interface. In his session at Internet of @ThingsExpo, Chris Matthieu, Co-Founder & CTO at Octoblu, Inc., will discuss how these devices generate enough data to learn our behaviors and simplify/improve our lives. What if we could connect everything to everything? I'm not only talking about connecting things to things but also systems, cloud services, and people. Add in a little machine learning and artificial intelligence and now we have something interesting...
Last week, while in San Francisco, I used the Uber app and service four times. All four experiences were great, although one of the drivers stopped for 30 seconds and then left as I was walking up to the car. He must have realized I was a blogger. None the less, the next car was just a minute away and I suffered no pain. In this article, my colleague, Ved Sen, Global Head, Advisory Services Social, Mobile and Sensors at Cognizant shares his experiences and insights.
We are reaching the end of the beginning with WebRTC and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) irreversibly encoded. In his session at Internet of @ThingsExpo, Peter Dunkley, Technical Director at Acision, will look at how this identity problem can be solved and discuss ways to use existing web identities for real-time communication.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT. Attendees will learn real-world benefits of WebRTC and explore future possibilities, as WebRTC and IoT intersect to improve customer service.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at Internet of @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, will share some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, an Open Source Cloud Communications company that helps the shift from legacy IN/SS7 telco networks to IP-based cloud comms. An early investor in multiple start-ups, he still finds time to code for his companies and contribute to open source projects.
The Internet of Things (IoT) promises to create new business models as significant as those that were inspired by the Internet and the smartphone 20 and 10 years ago. What business, social and practical implications will this phenomenon bring? That's the subject of "Monetizing the Internet of Things: Perspectives from the Front Lines," an e-book released today and available free of charge from Aria Systems, the leading innovator in recurring revenue management.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges.
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines.
All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Erik Lagerway, Co-founder of Hookflash, will walk through the shifting landscape of traditional telephone and voice services to the modern P2P RTC era of OTT cloud assisted services.
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehension and conference efficiency.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, will discuss single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example to explain some of these concepts including when to use different storage models.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace. These technological reforms have not only changed computers and smartphones, but are also changing the data processing model for all information devices. In particular, in the area known as M2M (Machine-To-Machine), there are great expectations that information with a new type of value can be produced using a variety of devices and sensors saving/sharing data via the network and through large-scale cloud-type data processing. This consortium believes that attaching a huge number of devic...
Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies, with a focus on the enterprise, industrial, aerospace, and defense industries. Innodisk is dedicated to serving their customers and business partners. Quality is vitally important when it comes to industrial embedded flash and DRAM storage products. That’s why Innodisk manufactures all of their products in their own purpose-built memory production facility. In fact, they designed and built their production center to maximize manufacturing efficiency and guarantee the highest quality of our products.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital business.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. Download Slide Deck: ▸ Here
BSQUARE is a global leader of embedded software solutions. We enable smart connected systems at the device level and beyond that millions use every day and provide actionable data solutions for the growing Internet of Things (IoT) market. We empower our world-class customers with our products, services and solutions to achieve innovation and success. For more information, visit www.bsquare.com.
With the iCloud scandal seemingly in its past, Apple announced new iPhones, updates to iPad and MacBook as well as news on OSX Yosemite. Although consumers will have to wait to get their hands on some of that new stuff, what they can get is the latest release of iOS 8 that Apple made available for most in-market iPhones and iPads. Originally announced at WWDC (Apple’s annual developers conference) in June, iOS 8 seems to spearhead Apple’s newfound focus upon greater integration of their products into everyday tasks, cross-platform mobility and self-monitoring. Before you update your device, here is a look at some of the new features and things you may want to consider from a mobile security perspective.