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BSkyB has reported revenue of £1.8 billion for the quarter to September; a 7% increase when compared with the same period last year, as the company grew its retail customer base by 71,000 in the last three months. Despite competition from BT Group, BSkyB also signed up 111,000 new customers for its broadband service while adding 37,000 new customers to its TV service.
Despite these figures the broadcaster reported an 8% decline in quarterly operating profits, down to £285 million, which it attributes to a 14% increase in expenses. The pay-per-view division announced that Premier League costs rose by 6%, while marketing expenses increased from £55 million to £320 million. Chief executive Jeremy Darroch stated that the drop in profits was ‘in line with our expectations as we invest in new services and absorb higher Premier League costs’.
The share price is currently at 926p, up 24% over the past 12 months. London-based stockbroking firm Numis Securities have placed a price target of 1041p on the stock.