BSkyB’s net profits rise in the first half

Many firms are vying for the top spot in the Internet television and video streaming services sector in the UK. One of these is BSkyB, which is pitted against LoveFilm and Netflix to try to wedge out a majority portion of the market. In fact, the firm just recently announced that they would be launching their own Internet TV service to go head to head with Netflix.

BSkyB’s service will be launching in the first half of this year and will target the 13-million strong households in the UK that still do not subscribe to any pay-TV services. Of the move, Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, commented: “Amidst all the Netflix noise comes a reminder that Sky is not about to give up its crown lightly. The launch of its online offering further complements its existing technical reach alongside the potential for new customers.”

For sure, Sky is making a statement with their entry into this market. And it seems like the firm is doing fairly well overall, because it has been reported that its net profits enjoyed a rise in the first half. In line with this, the firm is also pushing for expansions and will be taking on 1,300 more employees over the next two years.

BSkyB reported their earnings at £441 million in the six months leading up to December of last year. This rose by 8.4% compared to the £407 million reported in the year 2010 for the same period.

In the earnings release, chief executive Jeremy Darroch stated: “It has been a strong first half with progress on all fronts. While these are tough times for many consumers, our customers are staying loyal and more households continue to join us. From broadband to high definition, people are choosing Sky for a wider range of products than ever, underlining the transformation of our business over the last few years.”