FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the month of July 2007
27 July 2007
BRITISH SKY BROADCASTING GROUP PLC
(Name of Registrant)
Grant Way, Isleworth, Middlesex, TW7 5QD England
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): Not Applicable
EXHIBIT INDEX
Exhibit
EXHIBIT NO.1 Press release of British Sky Broadcasting Group plc
announcing Final Results released on
27 July 2007
BRITISH SKY BROADCASTING GROUP PLC
Results for the twelve months ended 30 June 2007
Strong operational and financial performance; 27% increase in the full year
dividend
More customers are choosing more of Sky's products than ever before
- Annual new customer additions 1.446 million, growth of 13% on the prior
year
- Annual net customer growth of 406,000 to 8.582 million
- Record Sky+ growth of 821,000 to 2.374 million, 28% penetration of the base
- HD customers of 292,000, Sky's fastest take-up for an additional TV product
- Sky Broadband customers of 716,000
- Record Sky Talk customer growth of 342,000 to 526,000
- 1,150 exchanges unbundled, 70% coverage of UK households
Strong top-line growth; profits reflect investment for future growth
- Revenue increased by 10% to GBP4,551 million
- Underlying gross margin of 63%, up from 61% in the prior year(1)
- EBITDA of GBP1,007 million despite broadband and telephony investment
- Operating profit of GBP815 million, including losses of GBP169 million from
Residential Broadband and GBP23 million from Easynet Enterprise, and an
exceptional gain of GBP49 million(2)
- Underlying operating profit increased to GBP958 million, annual growth of 6%
- Basic EPS of 28.4p (2006: 30.2p) and adjusted EPS of 26.3p (2006: 30.7p)(3)
- A proposed final dividend of 8.9 pence generating a full year dividend of
15.5 pence, a 27% increase
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(1) Underlying gross margin excludes the impact of Residential Broadband,
Easynet Enterprise and the exceptional gain from a third party channel provider
of GBP65 million accounted for within programming expenses
(2) Net exceptional gain includes a one-off receipt from a third party channel
provider of GBP65 million and GBP16 million for litigation costs
(3) Adjusted EPS excludes mark-to-market in derivative financial instruments
that do not qualify for hedge accounting, an exceptional gain of GBP65 million
and an exceptional charge of GBP16 million
James Murdoch, Chief Executive said:
"This year has been one of enormous importance and change for us, with the
launch of our broadband and talk services transforming our business and our
future prospects fundamentally. This expanded product range is now attracting
new customers to Sky at a very healthy pace, as well as deepening our
relationships with existing customers.
"The team has delivered a strong financial performance whilst building the
foundations for future growth. Continued successful execution of our strategy
gives us confidence that we are well placed to capitalise on the significant
opportunities available to us, and the proposed 27% increase in the full year
dividend is a mark of that confidence."
Enquiries:
Analysts/Investors:
Andrew Griffith Tel: 020 7705 3118
Robert Kingston Tel: 020 7705 3726
E-mail: investor-relations@bskyb.com
Press:
Robert Fraser Tel: 020 7705 3036
E-mail: corporate.communications@bskyb.com
An interview with Jeremy Darroch, CFO, is available on
http://www.sky.com/corporate and on www.cantos.com in video, audio and text.
A conference call for U.K. and European analysts and investors will be held at
8:30 a.m. (BST) today. To register for this, please contact Silvana Marsh at
Finsbury on +44 20 7251 3801. A live webcast of this call and replay facility
will be available on Sky's corporate website, http://www.sky.com/corporate.
There will be a separate conference call for US analysts and investors at 10.00
a.m. (EST) today. Details of this call have been sent to US institutions and can
be obtained from Dana Johnston at Taylor Rafferty on +1 212 889 4350. A live
webcast of this call and replay facility will be available on Sky's corporate
website, http://www.sky.com/corporate.
Results highlights
All financial results have been prepared in accordance with International
Financial Reporting Standards ("IFRS"), including comparatives.
Operational Metrics
30-Jun-07 31-Mar-07 Net additions
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Total customers (000s)(1)(2)(3) 8,582 8,492 90
Additional products (000s):
Sky+(4) 2,374 2,167 207
Multiroom(5) 1,343 1,297 46
HD 292 244 48
Broadband 716 457 259
Telephony 526 355 171
Other KPI's:
Churn for the quarter (annualised) 12.1% 13.7% -
ARPU GBP412 GBP406 -
SAC GBP251 not disclosed -
===================================================================================================================================
(1) Includes DTH customers in Republic of Ireland. (497,000 as at 30 June 2007,
427,000 as at 30 June 2006).
(2) DTH subscribers include only primary subscriptions to Sky (no additional
Sky+ or Multiroom subscriptions are counted). This does not include Freesat
customers who do not subscribe to an additional Sky service or churned customers
viewing free-to-air channels.
(3) DTH subscribers include subscribers taking Sky packages via DSL through
Tiscali TV.
(4) Sky+ includes HD households.
(5) Multiroom includes households subscribing to more than one set-top-box. (No
additional units are counted for the second or any subsequent Multiroom
subscriptions within one household).
Financial Summary
Year to Jun-07 Year to Jun-06
GBP'millions Reported Exceptional(6) Adjusted Reported
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Income statement:
Revenue(7) 4,551 - 4,551 4,148
Gross Profit 3,012 (65) 2,947 2,549
% Margin 66.2% - 64.8% 61.5%
Operating Profit(8) 815 (49) 766 877
% Margin 17.9% - 16.8% 21.1%
Profit for the year 499 (38) 461 551
Cash flow information:
EBITDA 1,007 (49) 958 1,017
Cash generated from operations 1,007 (49) 958 1,004
Net debt(9) (1,838) - (1,838) (761)
===================================================================================================================================
Per share information (pence): Year to Jun-07 Year to Jun-06
-----------------------------------------------------------------------------------------------------------------------------------
EPS - basic 28.4p 30.2p
EPS - adjusted(10) 26.3p 30.7p
===================================================================================================================================
(6) Exceptional items include a one-off receipt from a third party channel
provider for GBP65 million,GBP16 million charge for litigation costs and GBP6
million mark-to-market gain on financial derivatives
(7) Revenue includes GBP74 million from Residential Broadband and GBP159 million
from Easynet Enterprise
(8) Operating profit includes a net operating loss of GBP169 million from
Residential Broadband and GBP23 million from Easynet Enterprise
(9) Cash, cash-equivalents, short-term deposits, borrowings and borrowings
related financial instruments
(10) Adjusted EPS excludes mark-to-market in derivative financial instruments
that do not qualify for hedge accounting, an exceptional gain of GBP65 million
and an exceptional charge of GBP16 million
OVERVIEW
Sky generated growing levels of demand in the twelve months to 30 June 2007
("the year"), as we continue our evolution from a single product company into a
multi-product business. The superior choice, quality and value of our products
and services, coupled with the success of our 'See, Speak, Surf' marketing
campaign, have combined to attract record customer numbers to our platform. We
recorded 1,446,000 new DTH customer additions in the year, the highest since
analogue switch-off in 2001, and annual net customer growth of 406,000 leaves us
firmly on track to meet our target of 10 million DTH customers in 2010.
One year after becoming carbon neutral Sky's leadership on climate change was
recognised with the prestigious Man Group International Climate Change Award at
the 2007 Business in the Community Awards.
Our product range has never been stronger, with more customers choosing more
products from us than ever before. We had record annual product sales of over
four million, an increase of 68% on the prior year. We have also improved the
product mix among our existing base with one in three customers now choosing an
additional product. Sky+ exceeded its 25% penetration target three years early
and we remain on track to achieve our 30% Multiroom penetration target in 2010.
Sky HD added 254,000 customers in the year, the fastest take-up of an additional
TV product that we have seen.
The successful launch of Sky Broadband and Sky Talk has played an important role
in generating these levels of demand. At the end of the year we recorded 716,000
broadband customers and 526,000 telephony customers. We have been encouraged by
early customer mix, with 71% of our on-net broadband customers choosing a
paid-for product and 93% of customers connected within 11 working days. Our
local loop unbundled ("LLU") network covered 70% of UK households, a full six
months ahead of plan.
We also saw the first evidence of our investment in broadband and telephony
bringing additional operational and financial benefits. This investment has
provided us with a further tool to attract new customers, with around a third of
our fourth quarter broadband customer additions being new to Sky. Increasing our
emphasis on broadband and telephony in acquisition and retention has enabled us
to reduce the use of viewing package discounts. Whilst this led to a short term
increase in churn, it has improved the long-term health and profitability of our
customer base, and contributed to strong ARPU growth. We have seen the benefits
of spreading our fixed marketing costs over a larger customer base, with
subscriber acquisition costs ("SAC") showing a year-on-year reduction for the
first time in three years.
Overall, the considerable broadband investment this year, the benefits of which
will be reflected in higher medium term growth and profitability, has had an
impact on reported operating profit which was GBP815 million againstGBP877
million in the prior year and has resulted in adjusted earnings per share
reducing to 26.3 pence (2006: 30.7 pence). Reflecting strong operational
progress and on-track financial performance the Company is proposing a final
dividend of 8.9 pence per ordinary share, which, combined with the interim
dividend of 6.6 pence per ordinary share, results in total dividend growth of
27%. This represents a payout ratio of 44% of underlying earnings, slightly
higher than the 40% which remains the Company's medium term policy.
As previously outlined, 2008 will continue to reflect our investment for future
growth with the second year of investment in broadband and telephony scale.
OPERATIONAL REVIEW
In the three months to 30 June 2007 ("the quarter") new DTH customer additions
were 349,000, 20% higher than the prior year. Total product sales again exceeded
one million with our product range appealing to new and existing customers.
During the quarter 27% of Sky+ additions, 22% of HD additions and 33% of
broadband additions were new to Sky.
DTH churn for the quarter (annualised) was 12.1%, a reduction of 1.6 percentage
points from the prior quarter. We continued to see the short-term effects from
the change to our promotional strategy in November 2006. Excluding extra
cancellations as a direct result of this change, we estimate that underlying
churn increased by 0.2 percentage points to 10.8% compared with the fourth
quarter of the prior year. We have made good progress, although we still expect
churn to be affected, albeit on a reduced scale, in the early part of next
financial year.
ARPU increased by GBP6 during the quarter, and by GBP21 during the year, to
GBP412, reflecting the immediate benefit from a smaller number of offers,
contributions from broadband and telephony and increasing product penetration.
After strong net customer growth of 90,000 in the quarter, total DTH customers
increased by 141,000 in the second half of the year, an increase of 21% on the
second half of 2006. The mix of products and the balance of packages remained
strong: Sky+ households increased by 207,000 to 2.374 million, 28% penetration
of the base; Multiroom households increased by 46,000 to 1.343 million, 16% of
the base; and Sky HD finished the quarter with 292,000 customers. We further
enhanced our product offering with the launch of Sky Anytime on TV, an
additional service that showcases a selection of the week's programmes
on-demand. Anytime on TV is available to all Sky HD customers and to customers
with the latest generation Sky+ set-top-box, over 1.5 million customers in
total.
Broadband customers increased by 57% in the quarter from 457,000 to 716,000. 81%
were on our network. Of these on-net customers, 71% opted for a paid-for
package. We had a further 32,000 customers registered to UK Online, Easynet's
Residential Broadband service, bringing the total number of broadband customers
to 748,000. We achieved our 70% network coverage target six months ahead of
plan, with a total of 1,150 exchanges unbundled by the 30 June 2007.
Our Sky Talk customer base increased by 48% to 526,000 in the quarter. The
attractiveness of our new packages led to 44% of Sky Broadband customers at the
end of June also choosing a Sky Talk package.
During the quarter we continued to invest in, and received strong recognition,
for our programming. We recently secured the exclusive TV rights to the upcoming
series of the Golden Globe nominated 'Prison Break' and we announced a
multi-year agreement with Sony, ensuring that Sky Movies customers will continue
to enjoy the best movies from Sony Pictures on TV and via the PC. We received
significant third party endorsements for the quality of our programming: Sky One
received its first ever BAFTA awards, for 'Ross Kemp on Gangs' and 'Hogfather',
whilst Sky News retained its RTS News Channel of the Year title and received the
Broadcast Digital Award for Best News Channel of Year.
Sky is also announcing today (27 July 2007) a joint venture partnership with
Sony Computer Entertainment Europe (SCEE) to offer the more than 2 million
PSP(TM) (PlayStation(R) Portable) owners in the UK and Ireland the opportunity
to turn their devices into personalised on-demand video libraries. The new
service, due to launch in early 2008, will be the first official PSP video
download service anywhere in Europe. It will offer programming spanning sports,
entertainment, movies, music and animation from both Sky and 3rd party channel
partners. Video will be downloadable to PSPs either wirelessly or through a
connection to a host PC.
FINANCIAL SUMMARY
The financial performance in the year reflected a strong operational
performance, investment for future growth and the impact of net exceptional
items. Group revenue of GBP4,551 million included GBP74 million from Residential
Broadband and GBP159 million from Easynet Enterprise. Group operating profit of
GBP815 million included net operating losses of GBP169 million from Residential
Broadband,GBP23 million of losses from Easynet Enterprise and a net exceptional
gain of GBP49 million.
Excluding Residential Broadband, Easynet Enterprise and exceptional items,
underlying operating profit was GBP958 million, an increase of 6% on the prior
year.
Residential Broadband operating losses of GBP169 million were in line with our
expectations, comprising revenue of GBP74 million and operating costs of GBP243
million. Of these costs,GBP50 million were included in marketing;GBP63 million
in subscriber management;GBP108 million in transmission; and GBP22 million in
administration. Easynet Enterprise operating losses of GBP23 million comprised
revenue of GBP159 million and operating costs of GBP182 million,GBP4 million of
which were included in marketing;GBP17 million in subscriber management; GBP116
million in transmission; and GBP45 million in administration.
Revenue
Group revenue increased by 10% on the prior year to GBP4,551 million
(2006:GBP4,148 million), despite the advertising sector downturn and a fall in
wholesale subscription revenue.
Retail subscription revenue increased by 8% on the comparable period to GBP3,406
million (2006:GBP3,157 million). Excluding GBP70 million from Residential
Broadband and Easynet Enterprise, underlying growth in retail subscription
revenue was primarily driven by a 5% increase in the average number of DTH
customers. ARPU saw further acceleration in the fourth quarter to GBP412,
benefiting from the changes made to our promotional strategy part-way through
the second quarter and increasing additional product penetration.
Wholesale subscription revenue fell by GBP16 million to GBP208 million, with
lower premium channel take-up among cable TV subscribers and the impact from the
expiry and (non-renewal) of the contract to supply Sky's basic channels to
Virgin Media. During the year we concluded wholesale agreements with Tiscali TV
and a number of regional cable operators as we sought to widen the distribution
of our channels.
Advertising revenue increased by 3% to GBP352 million, despite continued
contraction of the TV advertising sector and the expiry and (non-renewal) of the
contract to supply Sky's basic channels to Virgin Media. We continued to
outperform the TV advertising sector, with our share increasing from an average
of 13% in the twelve months to June 2006 to 14% in the twelve months to June
2007.
Wholesale subscription and advertising revenues continue to be impacted by the
expiry and non-renewal of the basic channels carriage agreement with Virgin
Media. As previously announced, we estimate that this will adversely impact
operating profit by around GBP15 million, should the channels remain off their
platform for the entirety of the first quarter of financial year 2008.
Sky Bet revenue was GBP47 million, an increase of 27% on the prior year,
benefiting from five months of consolidation of 365 Media Group plc ("365
Media") and good growth in internet sports betting and TV games.
Installation, hardware and service revenue increased by 62%, from GBP131 million
to GBP212 million. This reflects strong gross additions and customer upgrades, a
higher proportion of premium priced hardware sales and a new contribution from
Residential Broadband sales.
Other revenue was GBP326 million (2006:GBP257 million) with the majority of the
increase driven by the full inclusion of Easynet Enterprise revenue for the year
of GBP155 million. On an underlying basis, other revenues declined slightly,
with reductions in Sky Active offsetting growth in website revenues.
Gross margin
Reported programming costs were GBP1,539 million, including an exceptional
credit of GBP65 million from a third party channel provider. Underlying
programming costs, excluding this exceptional gain, increased by GBP5 million on
the prior year as major investment in sports rights was offset by savings and
efficiencies in the other areas. This, together with good revenue growth,
enabled us to expand gross margin further which, excluding the impacts of
Residential Broadband, Easynet Enterprise and the exceptional gain, increased by
two percentage points to 63%.
Sports costs increased by GBP76 million to GBP842 million, principally behind
one-off events such as the Ryder Cup and the Cricket World Cup, together with
the first full season of domestic cricket. We continue to expect sports costs
for the 2008 financial year to increase by around GBP90 million following the
start of the new FAPL contract.
Movie costs for the year were GBP285 million, a saving of GBP25 million on the
prior year and the lowest absolute cost for seven years, as we continue to
benefit from favourable contract renewals. There was also a foreign exchange
benefit of GBP10 million from a more favourable average exchange rate at which
US dollars were purchased.
News and Entertainment costs were GBP184 million. The annual reduction of GBP16
million was due to a play-out of older stock in the prior year. As previously
outlined, we will continue to develop Sky One and invest in high quality,
must-see content in line with our programming strategy.
Excluding the exceptional receipt from a third party channel provider, third
party channel costs fell by GBP30 million to GBP293 million. A 5% increase in
the average number of DTH customers was more than offset by favourable contract
renegotiations which resulted in a 13% reduction in the average cost per
subscriber to GBP2.92 per month.
Other operating costs
Operating costs, excluding programming, increased by GBP525 million on the prior
year to GBP2,197 million, reflecting two main factors. Firstly, the strong
demand we are seeing for our entire product range, with strong new DTH customer
additions, record annual Sky+ growth and further Multiroom and HD penetration.
Second, other operating costs are impacted by our investment for future growth,
which reflects the roll-out costs of Sky Broadband and Sky Talk, consolidation
of Easynet Enterprise and expenditure related to infrastructure, broadcast
facilities and the contact centre.
Marketing costs were GBP734 million, an increase of GBP112 million on the prior
year which included a GBP49 million increase relating to Residential Broadband
and GBP2 million relating to Easynet Enterprise. Marketing costs relating to new
customers grew by GBP16 million to GBP316 million, reflecting the 13% annual
increase in new DTH sales offset by lower SAC, which fell by GBP10 on the prior
year toGBP251. The accelerating volumes of existing customer upgrades to Sky+,
Multiroom and HD resulted in a GBP5 million increase in investment to GBP81
million. Above-the-line costs rose by GBP21 million to GBP96 million, reflecting
the successful launch of the 'See, Speak, Surf' campaign and our belief that
increased brand investment benefits the long term durability of the business.
Retention and other marketing increased by GBP19 million to GBP187 million,
predominantly due to further investment in our segmentation database and an
increase in online marketing costs.
Subscriber management costs were GBP618 million, an increase of GBP150 million
on the prior year which included GBP60 million relating to Residential Broadband
and GBP8 million relating to Easynet Enterprise. The remaining increase related
to installation, hardware and service costs, although these are offset by their
associated revenues, higher contact centre costs and depreciation relating to
the implementation of new CRM systems.
Transmission costs of GBP402 million and administration costs of GBP443 million
increased by GBP168 million andGBP95 million respectively, principally due to
the inclusion of an additionalGBP199 million of Residential Broadband and
Easynet Enterprise costs, an exceptional administration expense of GBP16 million
relating to our legal claim against EDS, and increased depreciation of GBP15
million as a result of greater investment in IS infrastructure.
Profit
Reported operating profit of GBP815 million (2006:GBP877 million) included a net
exceptional gain of GBP49 million, Residential Broadband losses of GBP169
million and Easynet Enterprise losses of GBP23 million. Excluding Residential
Broadband, Easynet Enterprise and exceptional items, operating profit was GBP958
million, an increase of 6% on the prior year. Underlying operating profit margin
was in line with the prior year at 22%, despite higher investment.
After the Group's share of operating profits from joint ventures of GBP12
million (2006:GBP12 million) and a net interest charge of GBP103 million
(2006:GBP91 million), which included a positiveGBP6 million mark-to-market
movement (2006:GBP14 million loss) on the value of non-IFRS hedge accounted
derivatives and GBP13 million dividends declared by ITV plc during the year, the
Group made a profit before tax in the year of GBP724 million (2006: GBP798
million).
The total tax charge for the year was GBP225 million (2006:GBP247 million), at
an effective rate of 31% (2006: 31%).
Earnings
The Group's profit for the year was GBP499 million (2006:GBP551 million),
generating basic earnings per share of 28.4 pence (2006: 30.2p). Adjusted profit
for the period was GBP461 million (2006: GBP561 million), generating adjusted
earnings per share of 26.3 pence compared to 30.7 pence in the prior year. The
share buyback programme resulted in the number of shares outstanding reducing in
the year by 2% to 1,753 million at 30 June 2007 (2006: 1,791 million).
Exceptional items
The Group reported a net exceptional gain of GBP49 million within operating
profit, consisting of two items. Included within third party costs is a GBP65
million credit resulting from the payment relating to a proportion of the value
of certain third party channels. Partially offsetting this was a charge of GBP16
million recorded within administration expenses relating to the legal costs of
the Group's claim against EDS, which provided services to the Group as part of
the Group's investment in CRM systems software and infrastructure. We currently
expect to incur further costs of aroundGBP12 million in respect of this claim
during the next financial year, which will be recognised as an exceptional cost.
Cash flow
The cash flow performance of the business demonstrated continuing strong cash
conversion. Cash inflow from operations, including exceptional items, of
GBP1,007 million (2006:GBP1,004 million) was slightly ahead of the prior year
despite our investment in broadband and telephony.
The Group generated EBITDA of GBP1,007 million (2006:GBP1,017 million).
Excluding operating losses from Residential Broadband, Easynet Enterprise and
exceptional items, EBITDA increased by 8% to GBP1,111 million (2006:GBP1,027
million). Following a zero working capital movement during the year (2006:GBP13
million outflow), the Group's cash inflow from operations was alsoGBP1,007
million. After capital expenditure of GBP356 million, cash taxes of GBP128
million, net interest payable of GBP108 million and net proceeds from joint
ventures of GBP6 million, the Group generatedGBP421 million of free cash flow
(2006: GBP563 million). A total of GBP447 million was returned to shareholders
through a combination of the ordinary dividend and share buyback programme, and
the net cash outflow for acquisitions, relating to the investment in ITV and the
acquisitions of You Me TV and 365 Media, was GBP1,051 million. After the
inclusion of share purchases and proceeds in respect of share options and the
revaluation of long term borrowings and borrowing related financial derivatives,
net debt increased by GBP1,077 million to GBP1,838 million.
The Group continued to make progress on its capital expenditure and
infrastructure programme. Total capital expenditure for the year was GBP356
million, of whichGBP160 million related to the network investment and unbundling
of exchanges resulting from the roll out of Residential Broadband. The remaining
GBP196 million related to Easynet Enterprise, IS infrastructure, broadcast
infrastructure, property and business continuity projects and the development of
new products and services. We continue to expect capital expenditure relating to
the roll out of Residential Broadband to be aroundGBP250 million over the two
financial years to 2008, in line with our plans.
DISTRIBUTIONS TO SHAREHOLDERS
The Directors are proposing a final dividend for 2007 of 8.9 pence per share,
which, combined with the interim dividend of 6.6 pence per ordinary share, will
result in total dividend growth of 27% on the prior year. This represents a
payout ratio of approximately 60% of earnings on a reported basis and 44% on an
underlying basis, excluding the Residential Broadband investment and Easynet
Enterprise. The Group's dividend per share has grown by a total of over 70% in
the last two years, demonstrating the Board's commitment to use ordinary
dividend policy as a way of providing shareholder returns.
The ex-dividend date will be 24 October 2007 and, subject to shareholder
approval at the Annual General Meeting to be held on 2 November 2007, the final
dividend will be paid on 16 November 2007 to shareholders appearing on the
register at the close of business on 26 October 2007.
CORPORATE
On 14 May 2007 the Group announced a placement with institutional investors,
which raised net proceeds of approximately GBP300 million, from the issuance of
guaranteed notes maturing in 2027 pursuant to its EMTN Programme. The issuer was
British Sky Broadcasting Group plc and the notes were guaranteed by certain key
subsidiaries, including British Sky Broadcasting Limited and Sky Subscribers
Services Limited.
CORPORATE RESPONSIBILITY
During the quarter Sky celebrated its first anniversary of becoming carbon
neutral. One of Sky's commitments to carbon neutrality has been to continue
reducing the energy consumption of its products. Sky has continued the roll out
of its Auto Standby function, helping customers to reduce their household energy
bills by automatically putting inactive Sky HD and Sky+ boxes to sleep
overnight. Auto Standby has now been introduced to more than 1.6 million
customers' boxes. Sky was recognised with the prestigious Man Group
International Climate Change Award at the 2007 Business in the Community Awards,
presented by HRH the Prince of Wales and the former Vice President Al Gore.
Sky put out a call for entries to become its next major charity partner,
emphasising the opportunity for the winning charity to reach one in three homes
in the UK. The Group was also highly commended for its contribution to raising
achievement in young people in the UK through its community initiatives such as
Sky Living for Sport and Reach for the Sky.
Sky Arts also launched its broadcast sponsorship of the Guardian Hay Festival.
The festival received national coverage with the channel's "Hay on Sky" daily
broadcast. During the 10 days of the event Sky exhibited 'The Lower Carbon
Lifestyle Home' which gave visitors tips on how to reduce carbon emissions at
home.
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 of the
related IFRS measures.
Forward-looking statements
This document contains certain forward-looking statements within the meaning of
the United States Private Securities Litigation Reform Act of 1995 with respect
to the Group's financial condition, results of operations and business, and
management's strategy, plans and objectives for the Group. These statements
include, without limitation, those that express forecasts, expectations and
projections with respect to the potential for growth of free-to-air and pay-TV,
fixed line telephony, broadband and bandwidth requirements, advertising growth,
DTH subscriber growth, Multiroom, Sky+ and other services penetration, churn,
DTH and other revenue, profitability and margin growth, cash flow generation,
programming and other costs, subscriber acquisition costs and marketing
expenditure, capital expenditure programmes and proposals for returning capital
to shareholders.
These statements (and all other forward-looking statements contained in this
document) are not guarantees of future performance and are subject to risks,
uncertainties and other factors, some of which are beyond the Group's 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, the fact that the Group operates
in a highly competitive environment, the effects of laws and government
regulation upon the Group's activities, its reliance on technology, which is
subject to risk, change and development, failure of key suppliers, its ability
to continue to obtain exclusive rights to movies, sports events and other
programming content, risks inherent in the implementation of large-scale capital
expenditure projects, the Group's ability to continue to communicate and market
its services effectively, and the risks associated with the Group's operation of
digital television transmission in the U.K. and Ireland.
Information on some risks and uncertainties are described in the "Risk Factors"
section of Sky's Annual Report for the year ended 30 June 2007. Copies of the
Annual Report are available on request from British Sky Broadcasting Group plc,
Grant Way, Isleworth TW7 5QD or from the British Sky Broadcasting web page at
www.sky.com/corporate. 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.
Appendix 1 - TV Customer and Market Data
Fourth quarter as at Third quarter as at 31 Fourth quarter as at
30 June 2007 March 2007 30 June 2006
DTH homes (1),(2), (3) 8,582,000 8,492,000 8,176,000
Total TV homes in the U.K. and Ireland(4) 26,922,000 26,837,000 26,684,000
DTH homes as a percentage of 32% 32% 31%
total U.K. and Ireland TV homes
Cable - U.K. 3,411,000 3,406,000 3,294,000
Cable - Ireland 593,000 596,000 604,000
Total pay TV homes 12,586,000 12,494,000 12,074,000
Total pay TV homes as a percentage of total U.K. and 47% 47% 45%
Ireland TV homes
Sky+ homes 2,374,000 2,167,000 1,553,000
Multiroom homes(5) 1,343,000 1,297,000 1,047,000
HD homes 292,000 244,000 38,000
DTT - U.K.(6) 9,811,000 9,233,000 7,326,000
(1) Includes DTH customers in Republic of Ireland of 497,000, as at 30 June
2007.
(2) DTH customers include only primary subscriptions to Sky (no additional Sky+
or Multiroom subscriptions are counted). This does not include Freesat customers
who do not subscribe to an additional Sky service or churned customers viewing
free-to-air channels.
(3) DTH homes include customers taking Sky packages via DSL through Tiscali TV.
(4) Total U.K. homes estimated by BARB and taken from the beginning of the month
following the period end (latest figures as at 30 June 2007). Total Ireland
homes estimated by Nielsen Media Research as at July 2007.
(5) Multiroom includes households subscribing to more than one set-top-box. (No
additional units are counted for the second or any subsequent Multiroom
subscriptions.)
(6) DTT homes estimated by BARB and taken from the beginning of the following
month (latest figures as at 30 June 2007). These include Sky or Cable homes that
already take multi-channel TV.
Appendix 2 - Glossary
-------------------------------------------------------------------------------------------------------------------------------
Useful definitions Description
-------------------------------------------------------------------------------------------------------------------------------
Adjusted profit for the year Profit for the year adjusted to remove mark-to-market movements in
derivative financial instruments that do not qualify for hedge
accounting, exceptional items and any changes in the estimate of
recoverable tax assets in respect of prior years.
-------------------------------------------------------------------------------------------------------------------------------
Adjusted earnings per share Adjusted profit divided by the weighted average number of ordinary
shares during the year.
-------------------------------------------------------------------------------------------------------------------------------
ARPU Average Revenue Per User: the amount spent by the Group's
residential subscribers in the quarter, divided by the average
number of residential subscribers in the quarter, annualised.
-------------------------------------------------------------------------------------------------------------------------------
Churn The rate at which subscribers relinquish their subscriptions,
expressed as a percentage of total subscribers.
-------------------------------------------------------------------------------------------------------------------------------
Customer A subscriber to a DTH service.
-------------------------------------------------------------------------------------------------------------------------------
DTH Direct to home: the transmission of satellite services with a
reception through a mini-dish.
-------------------------------------------------------------------------------------------------------------------------------
EBITDA Earnings before interest, taxation, depreciation and amortisation is
calculated as operating profit before depreciation and amortisation
or impairment of goodwill and intangible assets.
-------------------------------------------------------------------------------------------------------------------------------
Gross margin Revenue less programming costs as a proportion of revenue.
-------------------------------------------------------------------------------------------------------------------------------
HD High Definition.
-------------------------------------------------------------------------------------------------------------------------------
Multiroom Installation of one or more additional Set-top-boxes in the
household of an existing DTH subscriber.
-------------------------------------------------------------------------------------------------------------------------------
Net debt Cash, cash-equivalents, short-term deposits, borrowings and
borrowings-related derivative financial instruments.
-------------------------------------------------------------------------------------------------------------------------------
On-net Customers subscribing to our unbundled broadband product.
-------------------------------------------------------------------------------------------------------------------------------
Product Any service chosen by a customer: these include DTH, Sky+,
Multiroom, Sky HD, Sky Broadband and Sky Talk.
-------------------------------------------------------------------------------------------------------------------------------
Sale A sale is a gross addition of any product.
-------------------------------------------------------------------------------------------------------------------------------
Set-top-box Digital satellite reception equipment.
-------------------------------------------------------------------------------------------------------------------------------
Sky+ Sky's fully-integrated Personal Video Recorder (PVR) and satellite
decoder.
-------------------------------------------------------------------------------------------------------------------------------
Underlying Excluding contribution from Sky Broadband and Easynet Enterprise and
net exceptional amounts.
-------------------------------------------------------------------------------------------------------------------------------
Viewing share Number of people viewing a channel as a percentage of total viewing
audience.
-------------------------------------------------------------------------------------------------------------------------------
Consolidated financial statements
Consolidated Income Statement for the year ended 30 June 2007
2007 2006
Notes GBPm GBPm
------------------------------------------------------------------------------------------------------------------------------
Revenue 1 4,551 4,148
Operating expense 2 (3,736) (3,271)
Operating profit 815 877
------------------------------------------------------------------------------------------------------------------------------
Share of results of joint ventures and associates 10 12 12
Investment income 3 46 52
Finance costs 3 (149) (143)
Profit before tax 724 798
------------------------------------------------------------------------------------------------------------------------------
Taxation 4 (225) (247)
Profit for the year 499 551
------------------------------------------------------------------------------------------------------------------------------
Earnings per share from profit for the year (in pence)
Basic 5 28.4p 30.2p
Diluted 5 28.2p 30.1p
----------------------------------------------------------------------------------------------------------------------------
! !
!Adjusted earnings per share from profit for the year (in pence) !
!Basic 5 26.3p 30.7p !
!Diluted 5 26.1p 30.6p !
----------------------------------------------------------------------------------------------------------------------------
Consolidated Income Statement for the quarter ended 30 June 2007
2007 2006
Three months Three months
ended ended
30 June 30 June
GBPm GBPm
(unaudited) (unaudited)
--------------------------------------------------------------------------------------------------------------------------------
Revenue 1,175 1,069
Operating expense (973) (852)
--------------------------------------------------------------------------------------------------------------------------------
EBITDA 257 261
Depreciation and amortisation (55) (44)
--------------------------------------------------------------------------------------------------------------------------------
Operating profit 202 217
--------------------------------------------------------------------------------------------------------------------------------
Share of results of joint ventures and associates 3 3
Investment income 4 15
Finance costs (41) (46)
Profit before tax 168 189
--------------------------------------------------------------------------------------------------------------------------------
Taxation (57) (63)
Profit for the quarter 111 126
--------------------------------------------------------------------------------------------------------------------------------
Earnings per share from profit for the quarter (in pence)
Basic 6.4p 7.0p
Diluted 6.3p 7.0p
--------------------------------------------------------------------------------------------------------------------------------
Consolidated Statement of Recognised Income and Expense for the year ended 30 June 2007
2007 2006
GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Profit for the year 499 551
Loss on available-for-sale investments (151) -
Net movements in hedging reserve
Cash flow hedges 39 (54)
Tax on cash flow hedges (12) 16
27 (38)
Net losses recognised directly in equity (124) (38)
--------------------------------------------------------------------------------------------------------------------------------
Total recognised income and expense for the year 375 513
--------------------------------------------------------------------------------------------------------------------------------
Consolidated Balance Sheet as at 30 June 2007
2007 2006
Notes GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Non-current assets
Goodwill 7 741 637
Intangible assets 8 261 218
Property, plant and equipment 9 670 519
Investments in joint ventures and associates 10 34 28
Available-for-sale investments 11 797 2
Deferred tax assets 12 54 100
2,557 1,504
--------------------------------------------------------------------------------------------------------------------------------
Current assets
Inventories 13 384 324
Trade and other receivables 14 524 489
Short-term deposits 15 647
Cash and cash equivalents 435 816
Derivative financial assets 5 7
1,363 2,283
--------------------------------------------------------------------------------------------------------------------------------
Total assets 3,920 3,787
--------------------------------------------------------------------------------------------------------------------------------
Current liabilities
Borrowings 17 16 163
Trade and other payables 15 1,295 1,247
Current tax liabilities 144 82
Provisions 16 8 6
Derivative financial liabilities 36 49
1,499 1,547
--------------------------------------------------------------------------------------------------------------------------------
Non-current liabilities
Borrowings 17 2,014 1,825
Other payables 17 84 66
Provisions 16 18 19
Derivative financial liabilities 258 209
2,374 2,119
--------------------------------------------------------------------------------------------------------------------------------
Total liabilities 3,873 3,666
--------------------------------------------------------------------------------------------------------------------------------
Shareholders' equity 19 47 121
--------------------------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity 3,920 3,787
--------------------------------------------------------------------------------------------------------------------------------
Consolidated Cash Flow Statement for the year ended 30 June 2007
2007 2006
GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Cash flows from operating activities
Cash generated from operations 1,007 1,004
Interest received 46 43
Taxation paid (128) (172)
Net cash from operating activities 925 875
--------------------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities
Dividends received from joint ventures and associates 9 7
Net funding to joint ventures and associates (3) (2)
Purchase of property, plant and equipment (292) (169)
Purchase of intangible assets (64) (43)
Purchase of available-for-sale investments (947) -
Purchase of subsidiaries (net of cash and cash equivalents purchased) (104) (209)
Decrease (increase) in short-term deposits 632 (453)
Net cash used in investing activities (769) (869)
--------------------------------------------------------------------------------------------------------------------------------
Cash flows from financing activities
Proceeds from borrowings 295 1,014
Repayment of borrowings (192) -
Proceeds from disposal of shares in Employee Share Ownership Plan ("ESOP") 37 13
Purchase of own shares for ESOP (76) (17)
Purchase of own shares for cancellation (214) (408)
Interest paid (154) (105)
Dividends paid to shareholders (233) (191)
Net cash (used in) from financing activities (537) 306
--------------------------------------------------------------------------------------------------------------------------------
Effect of foreign exchange rate movements - 1
Net (decrease) increase in cash and cash equivalents (381) 313
--------------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of the year 816 503
Cash and cash equivalents at the end of the year 435 816
--------------------------------------------------------------------------------------------------------------------------------
Notes to the consolidated financial statements
The financial information set out in this preliminary announcement does not
constitute statutory financial statements for the years ended 30 June 2007 or
2006, for the purpose of the Companies Act 1985, but it is derived from those
financial statements. Statutory financial statements for 2006 have been filed
with the Registrar of Companies and those for 2007 will be filed prior to the
Group's next annual general meeting. The Group's auditors have reported on those
accounts; their reports were unqualified and did not contain statements under s.
237(2) or (3) of the Companies Act 1985.
Whilst the financial information included in this preliminary announcement has
been prepared in accordance with International Financial Reporting Standards as
adopted for use in the European Union ("IFRS"), this announcement does not
itself contain sufficient information to comply with IFRS. The accounting
policies applied in preparing this financial information are consistent with the
Group's financial statements for the year ended 30 June 2006, with the exception
of a new accounting policy relating to derivatives that qualify for fair value
hedge accounting.
1. Revenue
2007 2006
GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Retail subscription 3,406 3,157
Wholesale subscription 208 224
Advertising 352 342
Sky Bet 47 37
Installation, hardware and service 212 131
Other 326 257
4,551 4,148
--------------------------------------------------------------------------------------------------------------------------------
To provide a more relevant presentation, management has chosen to re-analyse the
revenue categories from those previously reported. Other revenue now principally
includes income from Sky Active, Sky Card, Sky Mobile TV, technical platform
services and Easynet Enterprise.
2. Operating expense
2007 2006
GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Programming(i) 1,539 1,599
Transmission and related functions 402 234
Marketing 734 622
Subscriber management 618 468
Administration(ii) 443 348
3,736 3,271
--------------------------------------------------------------------------------------------------------------------------------
(i) In the year ended 30 June 2007, the Group recognised a GBP65 million credit,
arising from certain contractual rights under one of the Group's channel
distribution agreements. This item was previously disclosed as a contingent
asset in the Group's June 2006 consolidated financial statements.
(ii) In the year ended 30 June 2007, the Group recognised a GBP16 million
expense relating to the legal costs incurred to date on the Group's claim
against EDS (the information and technology solutions provider).
3. Investment income and finance costs
2007 2006
GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Investment income
Cash, cash equivalents and short-term deposits 33 52
Dividends receivable from available-for-sale investments 13 -
46 52
--------------------------------------------------------------------------------------------------------------------------------
2007 2006
GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Finance costs
- Interest payable and similar charges
GBP1 billion Revolving Credit Facility (12) (2)
Guaranteed Notes (135) (123)
Finance lease interest (8) (4)
(155) (129)
--------------------------------------------------------------------------------------------------------------------------------
- Other finance income (expense)
Remeasurement of borrowings and borrowings-related derivative financial instruments (i) - (10)
Remeasurement of programming-related derivative financial instruments (i) 6 (4)
6 (14)
--------------------------------------------------------------------------------------------------------------------------------
(149) (143)
--------------------------------------------------------------------------------------------------------------------------------
(i) Not qualifying for hedge accounting
4. Taxation
Taxation recognised in the income statement
2007 2006
GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Current tax expense
Current year 204 147
Adjustment in respect of prior years (15) (6)
Total current tax charge 189 141
--------------------------------------------------------------------------------------------------------------------------------
Deferred tax expense
Origination and reversal of temporary differences 22 106
Adjustment in respect of prior years 14 -
Total deferred tax charge 36 106
--------------------------------------------------------------------------------------------------------------------------------
Taxation 225 247
--------------------------------------------------------------------------------------------------------------------------------
5. Earnings per share
The weighted average number of shares for the year was:
2007 2006
Millions of Millions of
shares shares
--------------------------------------------------------------------------------------------------------------------------------
Ordinary shares 1,759 1,830
ESOP trust ordinary shares (4) (3)
Basic shares 1,755 1,827
--------------------------------------------------------------------------------------------------------------------------------
Dilutive ordinary shares from share options 12 5
Diluted shares 1,767 1,832
--------------------------------------------------------------------------------------------------------------------------------
Basic and diluted earnings per share are calculated by dividing profit for the
year into the weighted average number of shares for the year. In order to
provide a measure of underlying performance, management have chosen to present
an adjusted profit for the year which excludes items that may distort
comparability. Such items arise from events or transactions that fall within the
ordinary activities of the Group but which management believes should be
separately identified to help explain underlying performance.
2007 2006
GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Reconciliation of profit for the year to adjusted profit for the year
Profit for the year 499 551
Remeasurement of all derivative financial instruments (not qualifying for hedge accounting) (6) 14
Amount receivable from channel distribution agreement (note 2) (65) -
Legal costs relating to claim against EDS (note 2) 16 -
Tax effect of above items 17 (4)
Adjusted profit for the year 461 561
--------------------------------------------------------------------------------------------------------------------------------
2007 2006
pence pence
--------------------------------------------------------------------------------------------------------------------------------
Earnings per share from profit for the year
Basic 28.4p 30.2p
Diluted 28.2p 30.1p
Adjusted earnings per share from profit for the year
Basic 26.3p 30.7p
Diluted 26.1p 30.6p
--------------------------------------------------------------------------------------------------------------------------------
6. Dividends
2007 2006
GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Dividends declared and paid during the year
2005 Final dividend paid: 5.00p per ordinary share - 92
2006 Interim dividend paid: 5.50p per ordinary share - 99
2006 Final dividend paid: 6.70p per ordinary share 117 -
2007 Interim dividend paid: 6.60p per ordinary share 116 -
233 191
--------------------------------------------------------------------------------------------------------------------------------
The 2007 final dividend proposed is 8.9p per ordinary share being GBP155
million. The dividend was proposed after the balance date and is therefore not
recognised as a liability as at 30 June 2007.
7. Goodwill
Total
GBPm
--------------------------------------------------------------------------------------------------------------------------------
Carrying value
At 1 July 2005 417
Purchase of Easynet Group Limited 216
Other purchases 4
At 30 June 2006 637
--------------------------------------------------------------------------------------------------------------------------------
Purchase of 365 Media Group Plc 77
Other purchases 27
At 30 June 2007 741
--------------------------------------------------------------------------------------------------------------------------------
8. Intangible assets
Internally Other Other intangible
generated intangible assets not yet
intangible assets assets available for use Total
GBPm GBPm GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Cost
At 30 June 2006 34 327 30 391
Additions from business combinations - 24 - 24
Other additions 28 41 22 91
Disposals - (51) - (51)
At 30 June 2007 62 341 52 455
--------------------------------------------------------------------------------------------------------------------------------
Amortisation
At 30 June 2006 16 157 - 173
Amortisation for the year 9 63 - 72
Disposals - (51) - (51)
At 30 June 2007 25 169 - 194
--------------------------------------------------------------------------------------------------------------------------------
Carrying amounts
At 30 June 2006 18 170 30 218
At 30 June 2007 37 172 52 261
--------------------------------------------------------------------------------------------------------------------------------
9. Property, plant and equipment
Land and Equipment, Assets not yet
freehold Leasehold furniture and available for
buildings improvements fittings use Total
GBPm GBPm GBPm GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Cost
At 30 June 2006 115 53 591 50 809
Additions from business combination - - 1 - 1
Other additions 5 6 232 27 270
Disposals (1) (19) (93) - (113)
Transfers (14) 24 30 (40) -
At 30 June 2007 105 64 761 37 967
--------------------------------------------------------------------------------------------------------------------------------
Depreciation
At 30 June 2006 13 34 243 - 290
Depreciation 5 4 111 - 120
Disposals (1) (19) (93) - (113)
At 30 June 2007 17 19 261 - 297
--------------------------------------------------------------------------------------------------------------------------------
Carrying amounts
At 30 June 2006 102 19 348 50 519
At 30 June 2007 88 45 500 37 670
--------------------------------------------------------------------------------------------------------------------------------
10. Investments in joint ventures and associates
The movement in joint ventures and associates during the year was as follows:
2007 2006
GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Beginning of year
- Share of net assets 28 23
--------------------------------------------------------------------------------------------------------------------------------
Movement in net assets
- Funding, net of repayments 3 2
- Dividends received (9) (7)
- Share of profits 12 12
Transfers to subsidiaries - (1)
Movement in other payables - (1)
--------------------------------------------------------------------------------------------------------------------------------
End of year
- Share of net assets 34 28
--------------------------------------------------------------------------------------------------------------------------------
11. Available-for-sale investments
2007 2006
GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Non-current assets
Equity investments 797 2
--------------------------------------------------------------------------------------------------------------------------------
On 17 November 2006, the Group acquired 696 million shares in ITV, representing
17.9% of the issued share capital of ITV, for a total consideration of GBP946
million including fees and taxes.
12. Deferred tax
Recognised deferred tax assets
Share-
Fixed based Financial
asset Short-term payments instruments
temporary Tax temporary temporary temporary
differences losses differences differences differences Total
GBPm GBPm GBPm GBPm GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
At 30 June 2006 26 33 8 11 22 100
(Charge) credit to income (32) (18) 1 12 1 (36)
Credit (charge) to equity - - - 5 (12) (7)
Business combinations (3) - - - - (3)
At 30 June 2007 (9) 15 9 28 11 54
--------------------------------------------------------------------------------------------------------------------------------
13. Inventories
2007 2006
GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Television programme rights 290 277
Set-top boxes and related equipment 84 41
Other inventories 10 6
384 324
--------------------------------------------------------------------------------------------------------------------------------
14. Trade and other receivables
2007 2006
GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Net trade receivables 204 207
Amounts receivable from joint ventures and associates 8 7
Amounts receivable from other related parties 1 1
Prepayments 175 156
Accrued income 91 107
Other 45 11
524 489
--------------------------------------------------------------------------------------------------------------------------------
Included within prepayments is GBP27 million (2006: GBP73 million) which is due
in more than one year.
15. Trade and other payables
2007 2006
GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Trade payables 380 352
Amounts owed to joint ventures and associates 3 5
Amounts owed to other related parties 36 31
VAT 97 140
Accruals 468 428
Deferred income 245 246
Other 66 45
1,295 1,247
--------------------------------------------------------------------------------------------------------------------------------
16. Provisions
Provided Utilised At 30 June
At 1 July during the year during 2007
2006 GBPm the year GBPm
GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Current liabilities
Provision for termination benefits - 3 - 3
Other provisions 6 1 (2) 5
6 4 (2) 8
--------------------------------------------------------------------------------------------------------------------------------
Non-current liabilities
Other provisions 19 2 (3) 18
--------------------------------------------------------------------------------------------------------------------------------
17. Borrowings and non-current other payables
2007 2006
GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Current borrowings
Guaranteed Notes - 162
Loan Notes 16 -
Other current borrowings - 1
16 163
--------------------------------------------------------------------------------------------------------------------------------
Non-current borrowings
Guaranteed Notes 1,948 1,757
Other non-current borrowings - 1
Obligations under finance leases 66 67
2,014 1,825
--------------------------------------------------------------------------------------------------------------------------------
Non-current other payables
Accruals 10 15
Deferred income 74 51
84 66
--------------------------------------------------------------------------------------------------------------------------------
18. Share capital
2007 2006
GBPm GBPm
--------------------------------------------------------------------------------------------------------------------------------
Authorised ordinary shares of 50p
3,000,000,000 (2006: 3,000,000,000) 1,500 1,500
--------------------------------------------------------------------------------------------------------------------------------
Allotted, called-up and fully paid
1,752,842,599 (2006: 1,791,077,599) 876 896
--------------------------------------------------------------------------------------------------------------------------------
2007 2006
Number of Number of
ordinary shares ordinary shares
--------------------------------------------------------------------------------------------------------------------------------
Allotted and fully paid during the year
Beginning of year 1,791,077,599 1,867,523,599
Shares repurchased and subsequently cancelled (38,235,000) (76,446,000)
End of year 1,752,842,599 1,791,077,599
--------------------------------------------------------------------------------------------------------------------------------
19. Reconciliation of shareholders' equity
Available- Total
Share Share ESOP Hedging for-sale Other Retained shareholders'
capital premium reserve reserve reserve reserves earnings equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
----------------------------------------------------------------------------------------------------------------------------------
At 30 June 2006 896 1,437 (25) (52) - 311 (2,446) 121
Purchase of own
equity shares for
cancellation (20) - - - - 20 (214) (214)
Recognition and
transfer of cash
flow hedges - - - 39 - - - 39
Tax on items
taken directly to
equity - - - (12) - - 5 (7)
Revaluation of
available-for-sale
investments - - - - (151) - - (151)
Share-based
payment - - (29) - - - 22 (7)
Profit for the
year - - - - - - 499 499
Dividends - - - - - - (233) (233)
At 30 June 2007 876 1,437 (54) (25) (151) 331 (2,367) 47
--------------------------------------------------------------------------------------------------------------------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BRITISH SKY BROADCASTING GROUP PLC
Date: 27 July 2007 By: /s/ Dave Gormley
Dave Gormley
Company Secretary