LONDON (dpa-AFX) - Pay-TV broadcaster British Sky Broadcasting Group Plc (BSYBY.PK, BSY.L) reported Tuesday a higher first-half profit, as revenue growth in both retail and wholesale operations and efficient cost management offset weakness in the Sky business and advertising revenues. BSkyB does not expect any material improvement in the macro backdrop in 2012, as it anticipates strong consumer headwinds in the early part of the year. The company also announced plans of launching a new internet based pay TV service aimed at new customers. Detailing on the new launch planned in the first half of calendar 2012, the broadcaster said the service would enable customers to watch its content via broadband connected devices such as PC, laptop, tablet, smartphone or connected TV. The service would provide instant access to Sky Movies on demand. First-half pre-tax profit grew to 597 million pounds from last year's 467 million pounds, and adjusted pre-tax profit, which excluded certain one-time items, improved to 564 million pounds from last year's 477 million pounds. Six-month earnings per share were 25.2 pence, higher than 23.2 pence last year. Group revenue for the half year increased 6 percent to 3.36 billion pounds from 3.19 billion pounds a year ago driven by growth in both retail and wholesale operations. The growth came 'at a time when we froze subscription prices for customers and absorbed headwinds in Sky business and advertising,' the company said in a statement. Retail subscription revenue rose 5 percent to 2.76 billion pounds, benefiting from growth in customers and products. Wholesale subscription revenue increased 13 percent, with increased demand for channels and their HD versions by subscribers to other platforms. Advertising revenue fell 6 percent as a result of headwinds impacting the sector and higher payments to third party media partners. The company noted that its gross margin improved in the period as a result of revenue growth and cost savings achieved through efficiency programs across the business to deliver an overall reduction in other operating costs. The broadcaster added 772,000 net products in the second quarter, taking the total product base to 26.8 million, 13 percent higher than last year. It also added 100,000 net new households in the second quarter to reach 10.471 million customers amid a more cautious environment. Average revenue per unit or ARPU reached 544 pounds, 8 pounds higher than last year. Further, the company said its board has declared an interim dividend of 9.2 pence per share, 5 percent higher than last year. The company plans also to create 1,300 Sky jobs across the UK and Ireland over the next two years. BskyB shares are currently trading at 685 pence, up 19.50 pence or 2.93 percent.
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