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 May 2005
04 May 2005
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
This report is incorporated by reference in the prospectus contained in the
Registration Statements on Form F-3 (SEC File No. 333-08246) and Form F-3/S-3
(SEC File No. 333-106837) filed by the Registrant under the Securities Act of
1933.
EXHIBIT INDEX
Exhibit
EXHIBIT NO.1 Excerpt of Press release of British Sky Broadcasting Group plc
announcing 3rd Quarter Results released on 04 May 2005
British Sky Broadcasting Group plc
Consolidated Profit and Loss Account for the nine months ended 31 March 2005
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Before 2004/05 2003/04
goodwill Nine Before Nine
and Goodwill months goodwill Goodwill months
exceptional and ended and and ended
items exceptional 31 March exceptional exceptional 31 March
items Total items items Total
GBPm GBPm GBPm GBPm GBPm GBPm
Notes (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
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Turnover: Group and share of joint
ventures' turnover 3,012 - 3,012 2,759 - 2,759
Less: share of joint ventures' turnover (52) - (52) (62) - (62)
Group turnover 1 2,960 - 2,960 2,697 - 2,697
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Operating expenses, net 2 (2,386) (85) (2,471) (2,259) (87) (2,346)
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Operating profit 574 (85) 489 438 (87) 351
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Share of joint ventures' and associates'
operating results 12 - 12 (4) - (4)
Loss on disposal of investments in joint
ventures 3 - (23) (23) - - -
Profit on disposal of fixed asset
investments 3 - - - - 51 51
Amounts written back to fixed asset
investments, net 3 - - - - 24 24
Profit on ordinary activities before
interest and taxation 586 (108) 478 434 (12) 422
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Interest receivable and similar income 22 - 22 5 - 5
Interest payable and similar charges (69) - (69) (68) - (68)
Profit on ordinary activities before
taxation 539 (108) 431 371 (12) 359
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Tax on profit on ordinary activities (158) - (158) (116) - (116)
Profit on ordinary activities after taxation 381 (108) 273 255 (12) 243
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Equity dividends (77) (53)
Retained profit for the period 196 190
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Earnings per share - basic 14.2p 12.5p
Earnings per share - diluted 14.2p 12.5p
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1
Consolidated Profit and Loss Account for the three months ended 31 March 2005
Before 2004/05 Before 2003/04
goodwill Three months goodwill Goodwill Three months
and ended 31 and and ended 31
exceptional March 2005 exceptional exceptional March 2004
items Goodwill Total items items Total
GBPm GBPm GBPm GBPm GBPm GBPm
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
--------------------------------------------------------------------------------------------------------------------------------
Turnover: Group and share of joint ventures'
turnover 1,029 - 1,029 950 - 950
Less: share of joint ventures' turnover (14) - (14) (19) - (19)
Group turnover 1,015 - 1,015 931 - 931
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Operating expenses, net (795) (28) (823) (776) (29) (805)
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Operating profit 220 (28) 192 155 (29) 126
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Share of joint ventures' and associates'
operating results 4 - 4 1 - 1
Profit on disposal of fixed asset investments - - - - 49 49
Profit on ordinary activities before interest
and taxation 224 (28) 196 156 20 176
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Interest receivable and similar income 7 - 7 2 - 2
Interest payable and similar charges (22) - (22) (23) - (23)
Profit on ordinary activities before taxation 209 (28) 181 135 20 155
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Tax on profit on ordinary activities (62) - (62) (42) - (42)
Profit on ordinary activities after taxation 147 (28) 119 93 20 113
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Equity dividends - -
Retained profit for the period 119 113
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Earnings per share - basic 6.3p 5.8p
Earnings per share - diluted 6.3p 5.8p
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Notes to Financial Statements
1 Turnover
The Group's turnover, whilst deriving from one class of business, has been
analysed as follows:
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2004/05 2003/04
Nine months Nine months
ended ended
31 March 31 March
GBPm GBPm
(unaudited) (unaudited)
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DTH subscribers 2,171 1,973
Cable subscribers 166 160
Advertising 242 223
Sky Bet (i) 186 133
Sky Active (i) 67 86
Other 128 122
2,960 2,697
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(i) Additional detail has been provided with regard to the analysis of
interactive revenues between the Group's betting and games revenues -
"Sky Bet" - and other interactive revenues - "Sky Active" - and the
prior year comparatives have been restated accordingly.
2 Operating expenses, net
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2004/05 2003/04
Nine months Nine months
ended ended
31 March Before 31 March
Before goodwill Goodwill Total goodwill Goodwill Total
GBPm GBPm GBPm GBPm GBPm GBPm
(unaudited) (unaudited)(unaudited) (unaudited) (unaudited)(unaudited)
--------------------------------------------------------------------------------------------------------------------
Programming (i) 1,216 - 1,216 1,248 - 1,248
Transmission and related
functions (i) 128 - 128 115 - 115
Marketing 379 - 379 299 - 299
Subscriber management 288 - 288 279 - 279
Administration 207 85 292 195 87 282
Betting 168 - 168 123 - 123
2,386 85 2,471 2,259 87 2,346
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(i) The amounts shown are net of GBP7 million (2003/04: nine months ended
31 March: GBP10 million) receivable from the disposal of programming
rights not acquired for use by the Group, and GBP22 million (2003/04:
nine months ended 31 March: GBP21 million) in respect of the provision to
third party broadcasters of spare transponder capacity.
3 Exceptional items
2004/05
(i) Loss on disposal of investments in joint ventures
On 1 November 2004, the Group sold its 49.5% investment in Granada Sky
Broadcasting for GBP14 million in cash, realising a loss on disposal of GBP23
million. This included the write back of GBP32 million of goodwill which had
previously been written off to reserves, as permitted prior to the
implementation of Financial Reporting Standard ("FRS") 10, "Goodwill and
Intangible Assets". The loss on disposal is a non-operating exceptional item as
defined by FRS 3 "Reporting Financial Performance" ("FRS 3") and is therefore
recorded as an exceptional item below operating profit.
2003/04
(ii) Profit on sale of fixed asset investments
On 7 October 2003, the Group disposed of its listed investment in Manchester
United plc, realising a profit on disposal of GBP2 million. The profit on
disposal is a non-operating exceptional item as defined by FRS 3 and is
therefore recorded as an exceptional item below operating profit.
On 1 March 2004, the Group sold its 20% shareholding in QVC (UK), operator of
QVC - The Shopping Channel, for GBP49 million in cash, realising a profit on
disposal of GBP49 million. The profit on disposal is a non-operating exceptional
item as defined by FRS 3 and is therefore recorded as an exceptional item below
operating profit.
(iii) Amounts written back to fixed asset investments, net
The Group reduced its provision against its minority equity investments in
football clubs by GBP33 million, following the disposal of its investment in
Manchester United plc in October 2003 for GBP62 million in cash. The Group also
increased its provision against its remaining minority equity investments in
football clubs by a further GBP9 million. The reduction of GBP33 million in the
provision is recorded as an exceptional item below operating profit as it
relates directly to the disposal of the investment as detailed above. The
increase in the remaining provision is recorded as an exceptional item below
operating profit due to the distortion that its inclusion within operating
expenses would have on the individual operating expenses line to which it was
attributed.
4 Basis of preparation
The Consolidated Profit and Loss Account presentation includes the Group's
results before goodwill and exceptional items in addition to results after
goodwill and exceptional items as this presentation provides an alternative
basis that may be used to assess the ongoing operating performance of the Group.
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: 04 May 2005 By: /s/ Dave Gormley
Dave Gormley
Company Secretary