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

2. Tony Ball Chief Executive Officer

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

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

5. Digital subscriber adoption rates

6. 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

7. Subscriber mix

8. Subscriber half - life
Subscribers
+ 4 years
Years

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

10. Strong content pipeline
Continued innovation

11. Operating profit before goodwill
82% growth on prior period

12. Martin Stewart Chief Financial Officer

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

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

15. DTH subscribers
5.1m

16. 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

17. Churn
10.2%
9.8%

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

19. 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

20. DTH subscription revenue
£715m
£536m

21. Average revenue per subscriber
£286
£281

22. Sky Box Office revenues
£35m
£20m

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

24. Advertising revenue
£134m
£113m

25. Sky Interactive revenues
£37m
£2m

26. 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

27. 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

28. Marketing costs
£212m
£179m

29. Proportion of direct sales increasing
30%
26% 7%

30. Transmission costs
£52m
£52m

31. Subscriber management

32. 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)

33. Operating profit before goodwill
£51m
£28m

34. EBITDA
£78m
£50m

35. Net debt
£1.4bn

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

37. Tony Ball Chief Executive Officer

38. Strategy
Right products
Customer service
New services to drive ARPU

39. ARPU

40. Hourly usage per day
Source: CSFB

41. Interactivity today 50% usage of Sky Sports Extra
1,300,000 registrations
500,000 customers made purchases

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

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

44. Sky interactive
iTV

45. Delivery
Subscriber growth
Increased ARPU
Low churn
Interactivity

46. Questions & Answers
Please wait to ask your question until the microphone has been handed to you. Thank you.