LONDON (AFP) - British satellite broadcaster BSkyB said profit rose by 16 percent in the first quarter as the group enjoyed strong subscriber growth in the run-up to the key Christmas trading period.
Pretax profit increased to 147 million pounds (210 million euros, 271 million dollars) in the three months to the end of September from 127 million pounds during the same period in 2003.
The number of direct-to-home subscribers grew by 62,000 in the first quarter to 7.2 million, beating analysts' consensus forecast for a rise of between 40,000 and 50,000.
BSkyB said Friday that it was on track to achieve its target of 8.0 million subscribers by December 2005.
Group net profit meanwhile rose 3.0 percent to 93 million pounds while revenue increased 11 percent to 940 million pounds.
"Sky achieved a solid set of results in the first quarter, with good sales and profit growth and we remain in a strong financial position," chief executive James Murdoch said in a statement accompanying the results.
"Our second quarter has commenced in line with expectations as we begin the important run up to Christmas," added Murdoch, son of media baron and BSkyB chairman Rupert Murdoch.
BSkyB's share price jumped 6.30 percent to 565.5 pence in early London dealing.
"Sky has produced a solid set of first quarter results," UBS analysts wrote in a note to clients, as it retained a 'buy' rating on the stock.
BSkyB said its Sky Plus service, which allows customers to pause live television and record one satellite programme while viewing another, continued to grow in popularity with the number of users almost quadrupling in a year to 474,000.
The group's advertising revenue increased by 13 percent in the first quarter to 72 million pounds, giving it an 11.5 percent share of the British television advertising sector.
BSkyB's almost 7.5 million current customers must pay up to 50 pounds per month to watch exclusive British viewings of films and live sport, including football matches in the English Premiership.
11/12/2004 - 12:05 GMT - AFP