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BSkyB in high definition as it announces 1,000 new jobs

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Published Date: 29 January 2009
SATELLITE broadcaster BSkyB has unveiled plans to create 1,000 jobs – 140 of them in Scotland – as it attempts to accelerate the growth of high-definition television.
The news came as the group beat City forecasts for new customer growth and profits.

BSkyB said it had added 171,000 subscribers in the final three months of 2008, taking its customer base to 9.24 million.

It posted a 26 per cent rise in first-h
alf adjusted operating profit to £388 million on revenues up 6 per cent at £2.6 billion.

Analysts, who said consumers were staying in more often as the recession bites, had been expecting net customer additions of 134,000 and operating profits close to £360m.

BSkyB said it had seen a sharp rise in sales of its digital personal video recorder, Sky+, and high-definition products.

It now plans to significantly reduce the cost of its Sky+ HD set-top box and said it would need the extra 1,000 staff to cope with the expected demand.

Of the 140 posts being created north of the Border, 80 will be at a contact centre in Uddingston, 56 will be engineering roles across the country, while four HR positions will be added at the firm's Dunfermline base.

However, the broadcaster has been cutting jobs elsewhere. It told investors yesterday that it was reducing central costs after slashing 300 permanent roles and targeting cost areas such as consultancy and travel.

BSkyB said it saw a significant opportunity in high-definition television. More than seven million UK households already have HD-ready televisions and this is expected to almost double by the end of the decade. Analysts said the price reduction in the HD box made sense, to get customers "hooked" while they still feel they can afford it.

Others believe the company can benefit in a recession as people choose home entertainment over going out.

UBS analyst Daniel Kerven said: "While we are wary of rising unemployment as the year progresses, Sky has demonstrated its resilience and we continue to believe it can outperform its TV and consumer peers."

During the quarter, Sky's average annual revenue per user hit a record of £444.

BSkyB, which provides TV for one-third of British homes, employs 15,000 people, including 6,500 in Scotland.

Paul Richards, a media analyst at Numiscorp, said: "Sky's success has been due to great products, especially Sky+, decent customer service and attractive pricing."

In a further jobs boost, supermarket chain Asda said yesterday it would take on 7,000 extra staff across the UK this year, including 500 at a new store in Glenrothes.



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  • Last Updated: 28 January 2009 8:36 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: BskyB
 
 
  

 
 


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