Welcome to British Sky Broadcasting Group plc Interim Results 7 February 2001

Tony Ball Chief Executive Officer

Record Growth Higher ARPU Low Churn 5.1m £281 £286 10.2% 9.8%

Update on customers 5.25m customers signed up 94% now digital On track to end analogue service

Digital subscriber adoption rates

Sky subscriber demographics -80% 90% Normal Distribution 110% 120% Least affluent 20% Fourth most affluent 20% Third most Second most Most affluent Sky under-represented Sky over-represented

Subscriber mix

Subscriber half - life Subscribers + 4 years Years

Year on year change in viewing % point movement on prior year Three months to 31 December Source: BARB

Strong content pipeline Continued innovation

Operating profit before goodwill 82% growth on prior period

Martin Stewart Chief Financial Officer

Record Growth Higher ARPU Low Churn 5.1m £281 £286 10.2% 9.8%

Growing profitability £’m Operating profit 2000/01 1999/00

DTH subscribers 5.1m

Subscribers by platform Half Year 1999/00 3,966 3,306 527 605 8,404 Half Year 2000/01 5,051 3,093 975 631 9,750 £m DTH Cable DTT Eire cable Total

Churn 10.2% 9.8%

Wholesale subscribers 975k 527k 3,911k 3,724k

Turnover Half Year 1999/00 Half Year 2000/01 £m 536 715 DTH 148 146 113 2 51 850 Half Year 2000/01 715 146 134 37 54 1,086 £m DTH Wholesale Advertising Sky Interactive Other Total

DTH subscription revenue £715m £536m

Average revenue per subscriber £286 £281

Sky Box Office revenues £35m £20m

Wholesale revenue £17m £25m £131m £121m

Advertising revenue £134m £113m

Sky Interactive revenues £37m £2m

Costs £m Programming Transmission Marketing Subscriber Management Administration Interactive Total Half Year 1999/00 432 52 179 100 55 4 822 Half Year 2000/01 534 52 212 118 70 49 1,035

Programming costs Half Year 1999/00 180 127 81 30 14 432 193 160 119 45 17 534 £m Sports Movies Third Party Channels Entertainment News Total

Marketing costs £212m £179m

Proportion of direct sales increasing 30% 26% 7%

Transmission costs £52m £52m

Subscriber management

Joint ventures - (5) (52) £m BiB Kirch - share of loss Kirch - Exceptional Goodwill Sky Ventures Total Half Year 1999/00 (47) - (5) (52) Half Year 2000/01 (52) (46) (70) (36) - (204)

Operating profit before goodwill £51m £28m

EBITDA £78m £50m

Net debt £1.4bn

Delivering on promises Subscriber growth Improved ARPU and churn Recovery in core profitability

Tony Ball Chief Executive Officer

Strategy Right products Customer service New services to drive ARPU

ARPU

Hourly usage per day Source: CSFB

Interactivity today 50% usage of Sky Sports Extra 1,300,000 e-mail registrations 500,000 customers made purchases

What is BiB? BiB MC Co STB subsidies Subsidy recovery Open…. Shopping mall Consumer brand E-commerce and communications Expertise People IP / technology Relationships

Multi-Channel Multi-Service Content Services Interactive advertising Betting Financial Billing Retail Holidays Consumer Services

Sky interactive iTV

Delivery Subscriber growth Increased ARPU Low churn Interactivity

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