|By Marketwired .||
|January 30, 2014 02:11 AM EST||
MIDDLESEX, UNITED KINGDOM -- (Marketwired) -- 01/30/14 --
BRITISH SKY BROADCASTING GROUP PLC Unaudited results for the six months ended 31 December 2013 Adjusted results(1) Statutory results Half year 2013/14 2012/13 Variance 2013/14 2012/13 Variance Revenue(1) GBP3,751m GBP3,487m +7.6% GBP3,757m GBP3,533m +6.3% EBITDA GBP813m GBP813m 0% GBP794m GBP845m -6.0% Operating profit GBP595m GBP647m -8.0% GBP565m GBP679m -16.8% Earnings per share 27.3p 28.3p -3.5% 26.2p 29.7p -11.8% (basic) Dividend per share 12.0p 11.0p +9.1% 12.0p 11.0p +9.1% STRONG FIRST HALF WITH EXCELLENT GROWTH Growth in paid-for products up 42%year on year * 873,000 new paid-for subscription products in Q2 * High Definition and Broadband now in 5 million homes * 36% of customers now take triple play, 534,000 more than a year ago Leading in connected TV growth; investment driving returns * Record growth in connected Sky+HD boxes, up 1 million in Q2 to 4.4 million * Threefold increase in On Demand usage * Sky Store transactional revenues up 100% Extending leadership in content across all genres * Major new partnership with HBO * Landmark deal with ITV to include new drama channel exclusive to Sky * Record audiences for new UK commissioned drama * Sky Sports viewing at highest level for 6 years Good financial performance in line with expectations * Adjusted revenue1 up 8% to GBP3,751 million * Adjusted EBITDA flat at GBP813 million despite investment in connected TV services and one-off step up in Premier League costs * Adjusted basic earnings per share down 3.5% to 27.3 pence * Interim dividend up 9% to 12.0 pence ___________________________ (1) Adjusted revenue as presented here is from recurring activities. It excludes revenues earned from the discontinued retailing of the ESPN channel in the current and prior periods. The current period includes the consolidation of revenues from former O2 broadband customers. Jeremy Darroch, Chief Executive, commented:"We had a very good first six months of the year as we reaped the benefits of our broader-based approach to growth. In a consumer environment that remains challenging, customers continued to choose to take Sky products in ever greater numbers in the run-up to Christmas, with Q2 growth up by over 40% on last year. In the last 12 months, we have added 3.8 million paid-for subscription products, the fastest rate of annual growth in three years."Customer demand in Q2 was strong across the board with good growth in all products. In a good quarter for TV growth, HD passed the milestone of 5 million customers, boosted by the success of our autumn advertising campaign with Joanna Lumley. Home communications also did well as customers continued to respond to the market-leading quality and value that Sky offers. Total sales of home communications products increased 4% year on year in the first half."The investments we are making to accelerate growth in connected TV services are delivering excellent results. We added a record 1 million connected Sky+HD boxes in Q2 - almost 11,000 a day - to take our base of connected homes to 4.4 million. This explosive growth means that Sky has quickly established itself as Britain's biggest connected TV platform and, with millions of customers yet to connect their boxes, there is still a big opportunity ahead."Everything that we see tells us that customers love the benefits that come with the connected box. On Demand usage more than trebled year on year and the number of movie rentals through Sky Store doubled as customers responded to greater flexibility and choice. More customers than ever are choosing Sky Go to watch content both in and out of the home, helped by the addition of 14 new entertainment channels and the launch of Sky Go on more connected devices. We continue to see significant opportunity for accelerated growth and returns as we use our innovation to differentiate our offering and give Sky customers the best ways to enjoy our content."We have further strengthened our market- leading content offering through significant new partnerships. An expanded partnership with HBO will see the two companies work together to co-produce major new cinematic drama series while Sky Atlantic remains the exclusive home of HBO programmes until 2020. In addition, a landmark new deal with ITV means there will be no better place to enjoy ITV on multiple devices, both at home and on the go."Our financial performance was strong in the first half and we remain on track for the full year. Good operating momentum led to an 8% increase in revenues for the period, excluding revenues from the discontinued retailing of ESPN. We are moving through a year of investment in which we are absorbing the one-off step up in Premier League costs well, with adjusted EBITDA flat thanks to a continued focus on operating efficiency. The 9% increase in the interim dividend to 12.0 pence, the tenth consecutive year of growth, reflects our confidence in the strength of our business and the progress we are making." Results Highlights Customer Metrics (unaudited) As at As at Annual Quarterly Growth 31-Dec-13 31-Dec-12 Growth to 31-Dec-13 Total paid-for products ('000s) 33,307 29,513 +3,794 +873 TV 10,536 10,358 +178 +77 HD 5,005 4,561 +444 +112 Multiroom 2,528 2,467 +61 +25 Sky Go Extra 643 - +643 +258 Broadband 5,127 4,235 +892 +110 Telephony 4,792 4,022 +770 +140 Line rental 4,676 3,870 +806 +151 Paid-for products per retail customer 2.9 2.7 New connected TV services ('000s) Internet-connected Sky+HD boxes 4,352 1,715 +2,637 +1,001 Sky Go unique users 3,314 3,066 +248 +23 Other metrics Total Customers ('000s) 14,954 14,493 +461 +113 Retail Customers 11,330 10,742 +588 +106 Wholesale Customers (1) 3,624 3,751 -127 +7 ARPU (2) GBP570 GBP558 +GBP12 +GBP11 Triple-play 36% 33% +3% - Churn (3) 10.8% 10.3% +0.5% -0.2% An additional KPI summary table containing further detailed disclosure can be found in Schedule 1. Business Performance (4) (unaudited) GBP'millions 6 months to 6 months to 31-Dec-12 31-Dec 13 Movement Adjusted revenue (5) 3,751 3,487 +7.6% Adjusted EBITDA 813 813 0% % Adjusted EBITDA profit margin 21.6% 23.0% -1.4% Adjusted operating profit 595 647 -8.0% Adjusted profit before tax 554 610 -9.2% Adjusted basic earnings per share (6) 27.3p 28.3p -3.5% (1) Wholesale customers taking at least one paid-for Sky channel. The customer numbers are as reported to us at November 2013. (2) Quarterly annualised. Excluding revenues earned from retailing the ESPN channel. (3) Quarterly annualised. (4) A reconciliation of adjusted EBITDA, adjusted operating profit and adjusted profit before tax to statutory measures is set out in Appendix 2. (5) Adjusted revenue as presented here is from recurring activities. It excludes revenues earned from the discontinued retailing of the ESPN channel in the current and prior periods. The current period includes the consolidation of revenues from former O2 broadband customers. (6) Adjusted basic earnings per share is calculated from adjusted profit for the period. A reconciliation of statutory profit to adjusted profit is set out in note 4 to the consolidated financial information. SUMMARY OF OPERATIONAL AND FINANCIAL PERFORMANCE We delivered another very strong performance in the first half of the year, further enhancing our position as Britain and Ireland's favourite home entertainment and communications provider. In the second quarter, we built on the strong momentum of Q1 to deliver the fastest rate of organic growth in paid-for subscription products in seven quarters. Strong customer demand drove an increase of 873,000 paid-for subscription products in the three months ended 31 December 2013, 42% higher than the same period last year. TV products saw the highest quarterly growth for three years, boosted by a strong performance from HD. In all, we added 112,000 new HD customers, taking our total HD base past the five million milestone. Sky Go Extra, our paid-for mobile TV service, also grew well with 258,000 net new additions in the quarter. This took the total base to 643,000, less than one year after launch. The growth of NOW TV was supported by a positive customer response to our new low-cost NOW TV box, which we started to market in the autumn. In addition, we achieved the highest sales of NOW TV's sports day pass in Q2 on 10 November, featuring Sky Sports' live coverage of Manchester United versus Arsenal in the Premier League. Home communications continued to perform well. We added 110,000 net new broadband customers in Q2 to take the base to 5.1 million, cementing our position as number 2 in the broadband sector. At the same time, we added 140,000 new products in telephony and 151,000 in line rental. In all, 36% of our customer base take all three of TV, broadband and telephony from Sky, 534,000 more than a year ago. We ended Q2 with 11.3 million retail customers, net growth of 106,000 , 20% higher year on year. Strong growth across all our products contributed to a GBP12 year on year increase in ARPU to GBP570. Churn for the quarter was 10.8%. Our continued operating momentum drove an 8% rise in adjusted revenue to GBP3,751 million. Adjusted EBITDA was flat while adjusted operating profit was down 8% and adjusted basic earnings per share were down 3.5% to 27.3 pence. This reflects the previously announced one-time step-up in Premier League costs and our investments to accelerate take-up and usage of connected TV services. We remain on track with our plans for the year. On the back of the strong operating growth, the Board has declared an interim dividend of 12.0 pence per share, an increase of 9% year on year and the tenth consecutive year of growth. Content We have further extended our market-leading content offering with a good performance across our channel portfolio. As an indication of the growing breadth and quality of our on-screen offering, the number of shows on Sky's entertainment channels attracting audiences over 1 million increased by more than 25% in the first half against the same period last year and has more than doubled over a three-year period. Today, we have announced a major new partnership with HBO which will build on the success of Sky Atlantic, rated by customers as one of their top three must-have pay channels. Under the terms of the new agreement, Sky and HBO will co-produce major new cinematic drama series for broadcast both on Sky Atlantic and on HBO's networks in Europe and the US. In addition, an extension to our content output deal ensures that Sky remains the exclusive home of HBO programmes in Britain and Ireland for the next six years. The extended output deal means that new HBO programmes - including the much-anticipated drama True Detective starring Woody Harrelson and Matthew McConaughey - will premiere exclusively on Sky Atlantic along with the return of award-winning shows such as Game of Thrones and Girls. As part of the deal, Sky customers will enjoy extended access to HBO content on demand and on the go. Earlier this week, we also announced a broad new partnership with ITV, the UK's largest commercial broadcaster. The deal will give Sky customers unrivalled access to ITV programming including a brand new pay TV channel, ITV Encore. As part of the long-term agreement, ITV's content will be made available across the entire range of Sky's digital and connected platforms, including Sky Go, NOW TV and Sky Store, where it will help to drive transactional revenues. ITV Encore, ITV's first brand new channel launch in eight years, will initially be available exclusively on the Sky platform, serving as the home of some of ITV's most successful dramas. ITV will also commission new pay-only dramas for the new channel which will hit screens from 2015 onwards. This will make Sky the best place to enjoy ITV content, further strengthening our entertainment offering and helping us reach into new segments of the market. Available to all Sky TV customers at no extra charge, ITV Encore will also increase value for existing customers. These new channel partnerships reinforce Sky's commitment to bring our customers new and distinctive content. On our own channels, our big push on drama in the run-up to Christmas brought success with the launch episodes of Yonderland, Moonfleet and Dracula all attracting more than one million viewers. The Tunnel, our Anglo-French crime drama, has been the most successful original commission for Sky Atlantic and Dracula, our co-production with NBC, was the most successful original scripted commission for Sky Living. We have also seen good success with US-acquired content with The Blacklist, starring James Spader on Sky Living, one of the stand-out hits in the run-up to Christmas. Looking forward, we have more than 100 hours of drama and comedy in production including Fortitude and Critical, two large-scale dramas with world-class casting. Sky Movies enjoyed a strong first half with viewing up 3% with much of that performance being driven by strong growth in non-linear viewing. Movie downloads via our On Demand service grew by 111% over the Christmas period, with Arthur Christmas the top-performing title. Share of viewing to Sky Sports hit its highest level for six years in the first half, for the first time out-rating BBC2, Five and Channel 4 in Sky homes. This represented a 5% increase on last year, despite the Ryder Cup benefitting viewing in 2012. Within this, our coverage of thePremier League performed very well. Average audiences over our 59 exclusively live games to the end of December were up 7% year on year with Manchester United versus Arsenal recording the largest audience of the season, with a peak of 3.2 million and a further 302,000 watching on Sky Go. In addition, audiences for England's Autumn Rugby Union Internationals were up 13% on last year, including a record audience for an England Rugby Union fixture on Sky, for England vs New Zealand. We have also signed new long-term rights agreements across six sports, including Super League, British and Irish Lions Rugby Union, England overseas international cricket, Scottish Football, WWE wrestling and Elite League Speedway. At the same time as enhancing our on-screen offering for customers, we have continued to keep content costs under control. Excluding the one-time impact associated with the first year of the new Premier League agreement and the discontinuation of ESPN carriage, programming costs were up only 1% year on year across the portfolio. Connected TV Services Our innovation in connecting our Sky+ HD box platform has led to Sky rapidly becoming Britain and Ireland's biggest connected TV platform. It also highlights, once again, our clear lead over competitor platforms. We have seen positive benefits from higher customer satisfaction and advocacy from those customers with a connected Sky+HD box relative to the overall base. Meanwhile, investment in expanding our On Demand service and raising awareness of its benefits is driving upsell to higher-tier packages, especially Entertainment Extra Plus. We have also seen strong growth in Sky Store activity with revenues from movie rentals doubling in Q2 year on year thanks to strong demand for titles such as Elysium, Despicable Me 2 and The Hangover Part III. This increased connectivity in customers' homes is accelerating growth in take-up and usage of our connected TV services: * We grew the number of Sky+HD connected homes by a record one million in the three months ended 31 December 2013. This means that 4.4 million of our TV customers now have a connected Sky+HD box, up more than 100% year on year. * We extended the range of channels and programming available On Demand, launching 12 new channels on Catch Up TV in Q2 to take the total to 56. We also continued to enhance our Box Sets service, an exclusive benefit for HD and Entertainment Extra Plus customers, with hundreds of hours of new content, including exclusive titles such as Game of Thrones and The Sopranos. * The combination of increased connectivity and an improved range of content drove a threefold increase in On Demand usage to hit an average weekly download rate of 10.9 million over the quarter. This peaked in the Christmas week to an all-time high of 12.4 million downloads with a significant growth in usage across all our pay content. * Sky Go extended its leadership in mobile TV with the addition of 14 new channels in the quarter to take the number of channels on the service to a market-leading total of 57. We also expanded the availability of Sky Go in the quarter with the launch of the service on Android tablets in early December. * Usage of Sky Go also hit a number of new records in the quarter. Total viewing requests for the quarter surpassed 200 million for the first time, with On Demand usage driving the majority of that growth, rising by 56% year on year. Live entertainment viewing over Sky Go also reached a new high in the Christmas week with An Idiot Abroad and Strike Back proving to be the mostpopularshows. Additionally, Sky Movies viewing set a new record since launch with top-performing titles including Iron Man 3 and Wreck-It Ralph. Customer Service We took some important steps forward in developing our market-leading service capability in the second quarter. We are the clear leader in the triple play sector with the highest satisfaction scores and lowestnumber of complaints according to latest Ofcom customer satisfaction and complaints surveys, and our net promoter score, our key internal measure of performance, reached an all-time high. We successfully completed the transfer of around 700 AVC engineers to Sky in October, meaning that all UK service visits are now completed by Sky people with an immediate positive impact on the customer experience. It also drove further reductions in the number of service visits, now at their lowest level in ten years, and a halving in the number of install revisits. Broader Contribution In November, we launched Sky Academy, a ground-breaking set of initiatives to support the under-25s, the generation born since Sky's launch in 1989. Our ambition is to create opportunities for up to one million young people by 2020, inspiring them, helping them to build skills and experience, and nurturing future talent. Headquartered in a brand new building at the heart of our campus, Sky Academy will bring together established initiatives, such as the award-winning Sky Sports Living for Sport, with a range of exciting new experiences. These include: three more Skills Studios in Livingston, Leeds and Dublin, which build on the successful London Studio which was opened in 2013; scholarship schemes to provide mentoring and financial support for emerging talent in sport, arts and television; and a comprehensive range of work experience and employment opportunities at Sky for secondary school students through to graduates, which will double in size over the next three years. Financial Strength Sky begins calendar 2014 in a strong position financially, on track and moving through the investment cycle well. The Group's liquidity and cash position remains healthy with average maturity on debt of 7 years. During calendar 2013, Sky returned a total of GBP769 million to shareholders in the form of dividends and buybacks while maintaining our leverage at around 1.1 times net debt/ EBITDA. We are proposing a 9% increase in the interim dividend to 12.0p and, alongside this, we have GBP434 million remaining of the GBP500 million buyback mandate approved by shareholders at the 2013 AGM. DETAILED FINANCIAL PERFORMANCE We delivered a good financial performance in the first half of what is a year of investment in the customer proposition. We saw first half revenue growth of 8% after adjusting for the loss of ESPN revenue, adjusted operating profit was down 8% and adjusted basic earnings per share were down 4%, in line with our expectations. Adjusting items are discussed on page 29. Unless otherwise stated, all figures and growth rates below exclude adjusting items. Revenue Group revenue increased by 8% to GBP3,751 million (2013: GBP3,487 million) after adjusting for the loss of ESPN revenue, with strong growth in both our retail and commercial businesses. Our revenue grew 6% on a statutory basis. Retail subscription revenue grew by 8% to GBP3,078 million (2013: GBP2,861 million) after adjusting for GBP6 million ESPN revenue (2013: GBP46 million), reflecting the continued strong product and customer growth, the September price rise and 46% growth in our transactional revenues to GBP35 million. Within this, we began to see growth in the contribution from our new connected services investment with Sky Store revenues growing by 100% to GBP14 million (2013: GBP7 million) - equivalent to GBP28 million per annum already. Our commercial businesses continued the improvement seen in the first quarter. Advertising revenue was up 7% to GBP231 million (2013: GBP215 million) helped by the post-Olympics increase in the advertising market and an increase in Sky's share of the advertising market, while we also saw a first-time contribution from our newly launched AdSmart product. Wholesale subscription revenue increased by 2% to GBP198 million (2013: GBP194 million). Other revenue increased by 21% to GBP206 million (2013: GBP170 million) with continued strong performance from Sky Bet which saw unique users up 15%, driving revenues up 27% to GBP84 million (2013: GBP66 million). Direct Costs Excluding the one-off GBP108 million step up in the new Premier League deal and the discontinuation of ESPN carriage, programming costs of GBP1,313 million (2013: GBP1,222 million) were up only 1% in the period due to disciplined choices made across our diverse content portfolio. We continued to strengthen our entertainment offering with further investment in UK commissioned content, premiering 20 UK commissions in the quarter. Tight cost control and positive operating leverage saw direct network costs increase at a rate 400bps lower than home communications growth. These costs were up 16% to GBP404 million (2013: GBP348 million) despite a 20% increase in the volume of home communications products in the last 12 months and a 12% increase in unbundled exchanges, as we continue to drive efficiencies in this area. Our fully unbundled customers are up 25% year on year, and our unbundled network now serves 90% of UK homes. Direct network costs also include a one-off step-up as we integrate the O2 consumer fixed line and broadband business. Other Operating Costs Marketing costs increased by 13% to GBP613 million (2013: GBP541 million) driven by the 42% increase in growth of paid-for products which we saw in the first half and the continued strong customer response to our connected services investment. We maintained our share of voice in the market with targeted above-the-line campaigns, and saw the launch of the NOW TV box and Entertainment pack in November. Marketing costs represented 16% of revenues - in line with recent trends. Subscriber management costs increased by 9% to GBP353 million (2013: GBP323 million) as we continued to see strong growth in products and customers and continued to integrate the acquired O2 customers into the Sky base. Additionally, there was an increase in variable costs relating to Sky Bet to support the revenue growth and for Sky Italia box sales. Transmission, technology and fixed network costs increased by 15% to GBP221 million (2013: GBP193 million) largely due to the first time consolidation of the cost base associated with the O2 broadband business. Administration costs were down year on year at GBP258 million (2013: GBP259 million). Depreciation and amortisation grew 31% to GBP218 million (2013: GBP166 million). The increase is due to the integration of the acquired O2 business and the resulting 21% rise in our broadband customer base, and a higher fixed asset base as we begin to depreciate the development costs of recently launched products such as Sky Go Extra, NOW TV and Adsmart. Connected Services Investment As outlined at our full year results, we have pressed forward with our plans to grow our business and create value by driving adoption of our new connected TV services. We invested approximately GBP40 million in the first half, the majority of which was variable and the result of strong customer demand, comprising hardware (wireless connectors, WiFi- enabled set top boxes, NOW TV boxes), additional content for our Sky Go and On Demand offerings, and promoting awareness of these services. We are already seeing clear benefits from this investment in line with our expectations. Adjusting Items Statutory operating profit of GBP565 million (2013: GBP679 million) includes a total net charge of GBP30 million following the O2 broadband acquisition comprising one-time customer migration costs, costs associated with running the network of the acquired O2 business in parallel to our own whilst the migration process takes place and GBP11 million of amortisation of acquired intangible assets. Statutory profit after tax of GBP411 million (2013: GBP487 million) includes a GBP9 million benefit relating to the tax effect on adjusting items. We also saw a net GBP3 million benefit relating to mark-to-market values of derivative financial instruments. Please refer to Appendix 2for a detailed reconciliation of statutory and adjusted numbers. Earnings EBITDA of GBP813 million (2013: GBP813 million) and operating profit of GBP595 million (2013: GBP647 million) were both in line with our plans. Profit after tax was GBP429 million (2013: GBP463 million), generating an adjusted basic earnings per share of 27.3 pence (2013: 28.3 pence). The number of shares in issue at 31 December 2013 was 1,580 million (31 December 2012: 1,620 million). Cash generated from operations The Group continues to generate strong cash flow. Adjusted cash generated from operations of GBP823 million (2013: GBP858 million) was down 4% primarily due to the timing impact of payments to third parties. Adjusted free cash flow was 19% lower at GBP390 million (2013: GBP482 million) reflecting higher capex and increased interest payments relating to the $800 million bond issued in November 2012. Capex increased by GBP38 million to GBP245 million (2013: GBP207 million) due to the phasing of payments on our campus redevelopment and the continued integration of O2 customers. Excluding one-off items related to the migration of O2 customers and the planned redevelopment of our Osterley campus, the underlying capex was GBP218 million. Net debt increased to GBP1,432 million (June 2013: GBP1,183 million) primarily as a result of share re-purchases of GBP115 million in the first half and the GBP298 million payment of the full year dividend. During the period we extended the maturity of our GBP743 million Revolving Credit Facility for an additional year to 31 October 2018 on improved terms. For an analysis of movements in net debt see Appendix 2. Distribution to Shareholders The Directors have declared an interim dividend of 12.0 pence per share (2013: 11.0 pence per share) representing an increase of 9% and the tenth consecutive year of an increase in the interim dividend for shareholders. In a year of investment in connected services, the Directors aim to maintain a progressive dividend policy and intend to reflect underlying earnings when setting the full year dividend. As in prior years, growth in the interim dividend is expected to be slightly higher than that expected for the full year. The ex-dividend date will be 26 March 2014 and the dividend will be paid on 22 April 2014 to shareholders of record on 28 March 2014. At the Company's AGM on 22 November 2013, we received shareholder approval to return a further GBP500 million of capital to shareholders via a share buyback programme of which GBP434 million capacity remains available to be used as at January 2014. For the six months to 31 December 2013, the Company repurchased for cancellation a total of 14 million shares for consideration of GBP115 million. The closing share count at the end of the quarter was 1,580 million. CORPORATE Competition Appeal Tribunal (CAT) In December the Court of Appeal heard appeals by BT, Sky and the FAPL against the CAT's August 2012 judgment in relation to the imposition by Ofcom of "Wholesale Must Offer" (WMO) obligations on Sky. Ofcom's WMO obligations remain in place pending the Court of Appeal's judgment, which is expected later in the year. On 13 January 2014, the European Commission opened a formal antitrust investigation into cross-border provision of pay TV services in the EU. The Commission will examine certain provisions relating to territorial protection in licence agreements between major US film studios (Twentieth Century Fox, Warner Bros., Sony Pictures, NBCUniversal, Paramount) and key European pay-TV broadcasters (the Group, Canal Plus in France, Sky Italia, Sky Deutschland and Digital Plus in Spain). The Commission has not reached any conclusions at this stage and the Group is not yet able to assess whether, or the extent to which, this review will have a material effect on the Group. 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 Felicity Marshall 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 at: 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) unless stated FY11/12 FY12/13 FY13/14 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Total paid-for 26,830 27,734 28,365 28,898 29,513 30,228 31,634 32,434 33,307 subscription products TV 10,253 10,268 10,288 10,308 10,358 10,388 10,422 10,459 10,536 Sky+ HD 4,063 4,222 4,343 4,468 4,561 4,669 4,786 4,893 5,005 Multiroom 2,350 2,378 2,402 2,423 2,467 2,476 2,489 2,503 2,528 Sky Go Extra - - - - - 44 166 385 643 Broadband 3,651 3,863 4,001 4,103 4,235 4,387 4,906 5,017 5,127 Telephony 3,407 3,627 3,768 3,888 4,022 4,208 4,501 4,652 4,792 Line Rental 3,106 3,376 3,563 3,708 3,870 4,056 4,364 4,525 4,676 New connected TV 2,549 3,211 3,735 4,023 4,781 5,546 5,966 6,642 7,666 services Connected HD boxes 442 604 995 1,255 1,715 2,284 2,709 3,351 4,352 Sky Go unique users 2,107 2,607 2,740 2,768 3,066 3,262 3,257 3,291 3,314 Total products and services 29,379 30,945 32,100 32,921 34,294 35,774 37,600 39,076 40,973 Other metrics: Retail customers 10,471 10,549 10,606 10,654 10,742 10,812 11,153 11,224 11,330 Wholesale customers 3,629 3,657 3,672 3,714 3,751 3,801 3,677 3,617 3,624 Total customers 14,100 14,206 14,278 14,368 14,493 14,613 14,830 14,841 14,954 ARPU (GBP)(1) GBP536 GBP538 GBP541 GBP542 GBP558 GBP567 GBP569 GBP559 GBP570 Triple- play % 29% 31% 32% 33% 33% 34% 35% 36% 36% Churn 9.6% 10.1% 9.9% 10.9% 10.3% 10.8% 10.9% 11.0% 10.8% Fixed Network Metrics On-net base 3,403 3,636 3,778 3,882 4,031 4,190 4,696 4,826 4,921 MPF base 2,146 2,423 2,588 2,762 2,926 3,159 3,359 3,504 3,659 SMPF base 1,257 1,213 1,190 1,120 1,105 1,031 1,337 1,322 1,262 MPF % 63% 67% 69% 71% 73% 75% 72% 73% 74% SMPF % 37% 33% 31% 29% 27% 25% 28% 27% 26% Off-net base 248 227 223 221 204 197 210 191 206 Total Broadband 3,651 3,863 4,001 4,103 4,235 4,387 4,906 5,017 5,127 On-net % 93% 94% 94% 95% 95% 96% 96% 96% 96% Total no. of LLU exchanges 1,907 1,964 1,965 2,036 2,108 2,202 2,323 2,354 2,355 (1) Calculations have been restated to exclude revenue earned from retailing the ESPN channel. Related Party Transactions Details of transactions with related parties during the six month period to 31 December 2013 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 names and functions of the directors of British Sky Broadcasting Group plc can be found on pages 34-35 of the 2013 Annual Report. 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, NOW TV, Sky Go, Sky Go Extra, 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 the associated PDF document. http://www.rns-pdf.londonstockexchange.com/rns/8439Y_-2014-1-30.pdf This information is provided by RNS The company news service from the London Stock Exchange END
Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
May. 30, 2015 05:30 AM EDT Reads: 4,527
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
May. 30, 2015 04:30 AM EDT Reads: 5,846
SYS-CON Events announced today that BMC will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust IT industrialization – allowing customers to provide amazing user experiences with optimized IT per...
May. 30, 2015 04:15 AM EDT Reads: 1,803
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
May. 30, 2015 03:30 AM EDT Reads: 5,810
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
May. 30, 2015 03:00 AM EDT Reads: 6,179
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
May. 30, 2015 02:00 AM EDT Reads: 6,557
Collecting data in the field and configuring multitudes of unique devices is a time-consuming, labor-intensive process that can stretch IT resources. Horan & Bird [H&B], Australia’s fifth-largest Solar Panel Installer, wanted to automate sensor data collection and monitoring from its solar panels and integrate the data with its business and marketing systems. After data was collected and structured, two major areas needed to be addressed: improving developer workflows and extending access to a business application to multiple users (multi-tenancy). Docker, a container technology, was used to ...
May. 30, 2015 01:00 AM EDT Reads: 2,821
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
May. 29, 2015 09:00 PM EDT Reads: 5,555
2015 predictions circa 1970: houses anticipate our needs and adapt, city infrastructure is citizen and situation aware, office buildings identify and preprocess you. Today smart buildings have no such collective conscience, no shared set of fundamental services to identify, predict and synchronize around us. LiveSpace and M2Mi are changing that. LiveSpace Smart Environment devices deliver over the M2Mi IoT Platform real time presence, awareness and intent analytics as a service to local connected devices. In her session at @ThingsExpo, Sarah Cooper, VP Business of Development at M2Mi, will d...
May. 29, 2015 04:27 PM EDT Reads: 959
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
May. 29, 2015 03:45 PM EDT Reads: 5,128
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In this session, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, will describe how to revolutionize your architecture and...
May. 29, 2015 02:33 PM EDT Reads: 917
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, discussed 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 t...
May. 29, 2015 02:00 PM EDT Reads: 6,907
We’re entering a new era of computing technology that many are calling the Internet of Things (IoT). Machine to machine, machine to infrastructure, machine to environment, the Internet of Everything, the Internet of Intelligent Things, intelligent systems – call it what you want, but it’s happening, and its potential is huge. IoT is comprised of smart machines interacting and communicating with other machines, objects, environments and infrastructures. As a result, huge volumes of data are being generated, and that data is being processed into useful actions that can “command and control” thi...
May. 29, 2015 02:00 PM EDT Reads: 1,412
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, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be
May. 29, 2015 01:15 PM EDT Reads: 3,122
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
May. 29, 2015 01:00 PM EDT Reads: 7,553
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) i...
May. 29, 2015 01:00 PM EDT Reads: 4,809
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
May. 29, 2015 01:00 PM EDT Reads: 2,510
Thanks to widespread Internet adoption and more than 10 billion connected devices around the world, companies became more excited than ever about the Internet of Things in 2014. Add in the hype around Google Glass and the Nest Thermostat, and nearly every business, including those from traditionally low-tech industries, wanted in. But despite the buzz, some very real business questions emerged – mainly, not if a device can be connected, or even when, but why? Why does connecting to the cloud create greater value for the user? Why do connected features improve the overall experience? And why do...
May. 29, 2015 12:42 PM EDT Reads: 1,071
SYS-CON Events announced today that O'Reilly Media has been named “Media Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York City, NY. O'Reilly Media spreads the knowledge of innovators through its books, online services, magazines, and conferences. Since 1978, O'Reilly Media has been a chronicler and catalyst of cutting-edge development, homing in on the technology trends that really matter and spurring their adoption by amplifying "faint signals" from the alpha geeks who are creating the future. An active participa...
May. 29, 2015 12:30 PM EDT Reads: 1,419
Imagine a world where targeting, attribution, and analytics are just as intrinsic to the physical world as they currently are to display advertising. Advances in technologies and changes in consumer behavior have opened the door to a whole new category of personalized marketing experience based on direct interactions with products. The products themselves now have a voice. What will they say? Who will control it? And what does it take for brands to win in this new world? In his session at @ThingsExpo, Zack Bennett, Vice President of Customer Success at EVRYTHNG, will answer these questions a...
May. 29, 2015 12:13 PM EDT Reads: 931