MIDDLESEX, UK--(Marketwire - Jan 31, 2013) -

 BRITISH SKY BROADCASTING GROUP PLC Unaudited results for the six months ended 31 December 2012 GOOD PROGRESS ON STRATEGY DELIVERING STRONG FINANCIAL PERFORMANCE Adjusted results (GBP) Reported results (GBP) Half year 2012/13 2011/12 Variance 2012/13 2011/12 Variance Revenue 3,533m 3,364m +5% 3,533m 3,364m +5% EBITDA 813m 772m +5% 845m 803m +5% Operating profit 647m 601m +8% 679m 632m +7% Earnings per share 28.3p 24.0p +18% 29.7p 25.3p +17% (basic) Dividend per share 11.00p 9.20p +20% 11.00p 9.20p +20% Further strong financial performance and increased returns to shareholders * Revenue up 5% to GBP3,533m * Adjusted operating profit up 8% to GBP647m * Adjusted basic earnings per share up 18% to 28.3 pence * Interim dividend up 20% to 11.0 pence Multi-product strategy delivering good operational growth * Subscription product growth of 615,000 in Q2 * Total subscription product base of 29.5 million, up 10% year on year * Triple-play penetration of 33%, up 4pp year on year * 88,000 new customers added in Q2 to reach 10.74 million, up 271,000 year on year * ARPU of GBP568, up GBP24 year on year Customers responding positively to our content and products * New services driving increased viewing - weekly On Demand downloads up 150% in Q2; Sky Go users increased 46% year on year to reach 3.1 million * Standout performance from Sky Sports - record audiences for Ryder Cup and US Open tennis, and over 9 million viewers to first season of Sky Sports F1 channel Continued excellent progress in cost initiatives and efficiency improvements * Adjusted other operating costs as percentage of sales reduced by 200 basis points Results highlights Customer Metrics (unaudited) As at As at Annual Quarterly Growth 31-Dec-12 31-Dec-11 Growth to 31-Dec-12 Products ('000s) TV (DTH and NOW TV) 10,358 10,253 +105 +50 HD 4,561 4,063 +498 +93 Multiroom 2,467 2,350 +117 +44 Broadband 4,235 3,651 +584 +132 Telephony 4,022 3,407 +615 +134 Line rental 3,870 3,106 +764 +162 Paid-for subscription 29,513 26,830 +2,683 +615 products Connected Sky+HD boxes 1,715 442 +1,273 +460 Sky Go unique users 3,066 2,107 +959 +298 Total Customers 10,742 10,471 +271 +88 Paid-for products per customer 2.7 2.6Other metrics Customers taking each of TV, broadband & talk 33% 29% ARPU (2) GBP568 GBP544 +GBP24 +18 Churn (2) 10.3% 9.6% An additional KPI summary table containing further detailed disclosure can be found in Schedule 1. Business Performance (1)(unaudited) GBP'millions 6 months to 6 months to 31-Dec-11 31-Dec-12 Movement Revenue 3,533 3,364 +5% Adjusted operating profit 647 601 +8% % Adjusted operating profit margin 18.3% 17.9% +40bps Adjusted profit before tax 610 564 +8% Adjusted basic earnings per 28.3 24.0 +18% share (3) (1) A reconciliation of adjusted operating profit and adjusted EBITDA to reported measures as well as cash generated from operations to adjusted free cash flow is set out in Appendix 2. (2) Quarterly annualised. (3) Adjusted basic EPS is calculated from adjusted profit for the period. A reconciliation of reported profit to adjusted profit is set out in note 4 to the condensed consolidated interim financial statements. Jeremy Darroch, Chief Executive, commented:"We have delivered another good performance in the first half with strong progress across the board. In what remains a tough consumer environment, our broadly-based growth strategy is working well. Good product growth in the quarter means that our total base of subscription products has grown by 10% year on year."During the half, we have invested in providing the best service to our customers while continuing to drive greater operational efficiency. We strengthened our content offering, extended our leadership in customer technology and continued to lead the industry in customer service."As a result, more households are joining Sky, our existing customers are staying loyal and they are choosing to spend more with us. In particular, we have seen a strong response to new services like On Demand and Sky Go which increase customer satisfaction and loyalty and will provide important sources of future growth."Together with our continued focus on cost control and efficiencies, this has delivered another excellent financial performance and increased returns to shareholders. We grew earnings per share by 18% in the first half and have increased the interim dividend by a further 20% to 11 pence."Although we expect the consumer environment in 2013 to remain challenging, we have a strong set of plans for the year ahead. We will keep getting better on screen, further improve our products and services for customers and maintain our focus on efficiency. The business is in good shape to continue to deliver for customers and shareholders." SUMMARY OF OPERATIONAL AND FINANCIAL PERFORMANCE The business performed well in the first half as we invested in providing the best possible service to customers while further improving the efficiency of our operations. We continued to get better on screen with new rights deals and original commissions; we maintained our leadership in customer technology with rapid adoption of new products that enhance the viewing experience and make it easier for customers to access our content when and where they choose; and we continued to improve the quality and efficiency of our customer service operations. This approach delivered a good operating performance and strong financial results. In a tough economic environment, more customers are taking more products and spending more money with Sky. In the three months to 31 December 2012, we added 615,000 new products, taking the total base to 29.5 million, up 10% year-on-year. Meanwhile, we added 88,000 new customers to reach a total of 10.7 million. In TV, we added 50,000 new customers in the quarter. Of these, 25,000 are subscribers to our new internet TV service NOW TV, which benefited from our first above-the-line marketing campaign in the autumn. We are set to launch sport on NOW TV later this year following beta testing which started in December. Customers now take an average of 2.7 products from us. This increased penetration of products, combined with a price rise in September, our first for two years, grew ARPU to GBP568, a GBP24 increase on the previo us year. Quarterly annualised churn was 10.3%. We delivered another strong quarter in home communications as we continue to outpace the rest of the market. Over the quarter, we added 132,000 new broadband customers, of which 38,000 were new standalone customers, to take our total customer base to 4.2 million. Meanwhile, our telephony customer base passed the four-million mark for the first time with the addition of 134,000 customers. As a result, we closed the quarter with 3.6 million triple-play customers, up 17% on last year. With 33% triple-play penetration, we see good headroom for futher growth with over six million TV customers yet to switch their communications services to Sky. Our operating performance converted into a good financial performance for the first half. The combination of 5% revenue growth and good cost control delivered an 8% improvement in adjusted operating profit of GBP647 million, and expanded the adjusted operating margin to 18.3%. Adjusted basic earnings per share grew by 18% to 28.3 pence. On the back of the strong financial performance, the Directors have declared an interim dividend of 11.00 pence per share, an increase of 20% year on year. Getting better on screen We made good progress on screen in the quarter as we continue to strengthen our content business. We continue to see new record audience figures across our channel portfolio, we are bringing outstanding new talent to Sky with new commissions, and we are seeing ever-increasing levels of customer satisfaction. Within this, Sky Sports delivered a standout performance. Viewing was up 9% in the quarter, building on a year that has seen record audiences in key events including the Ryder Cup and US Open tennis. In its debut season, the Sky Sports F1 channel reached more than nine million viewers while Sky Sports on Sky Go, our mobile TV service, continues to grow in popularity, registering a record 234,000 unique users for live coverage of the Manchester derby in December. We have made good progress in securing our portfolio of sports rights. We have signed 21 deals in the last 12 months meaning that 90% of our sports rights are now secured for the next three years. Today we have announced three brand new deals for live rugby union which will give viewers live coverage of Ireland's Guinness Series together with France and Italy's Autumn Internationals. We also have an outstanding series of events coming up on Sky Sports this year including the Ashes home and away, the Lions' tour to Australia and the Masters from Augusta - a fantastic line-up for customers. Meanwhile, our Sky Movies experience continues to get better. Our Sky Movies 007 channel, which launched in October and ran initially for one month, was a huge success attracting more than 5 million viewers. With an increasing number of our movies customers now with connected set-top boxes, we are also seeing a strong response to the choice we offer through our On Demand service. Total movie downloads across all platforms doubled year on year to over 30 million in Q2 boosted by Sky Movies 007. We further strengthened our movies offering with the announcement today of a new multi-year agreement with Sony. This follows two other major renewals, with Warner Bros and NBCUniversal, in the first half. Our portfolio of entertainment channels is resonating strongly, with Sky Living, Sky Atlantic and Sky 1 all in the top five 'must have' pay channels for customers. The success of our strategy to grow investment in original British content has delivered a 70% increase in hours of original-commissioned programming in the first half compared to last year. We also saw 13 returning series in the half including'Strikeback' and 'Spy'. We are putting a growing focus on original drama with some outstanding talent set to appear on Sky channels over the coming year including Dominic Cooper, Vanessa Redgrave and Idris Elba. As well as bringing customers a better choice of television, we will seek to monetise this growing content pipeline through our international programme sales and production company, which we acquired in the summer and rebranded as Sky Vision in October. Extending leadership in customer technology We strengthened our leadership in customer technology over the quarter with growing take-up and usage of On Demand and Sky Go, services that add value for customers by offering more choice and flexibility in the way they can access Sky's content. The proportion of Sky households with fully-connected HD set-top boxes continues to grow. Just under half a million boxes (460,000) were activated in the quarter, taking the total number of connected boxes to 1.7 million. We expect to maintain good growth in this area in 2013. The growth in the number of connected boxes, combined with the launch of Catch Up TV and the addition of BBC iPlayer, ITV Player and Demand Five, drove a marked increase in the usage of our On Demand service. Average weekly downloads more than doubled in the quarter from 1.8 million to 4.4 million by the end of December - more than four times the number of downloads 12 months earlier - with Sky content accounting for more than 50% of the downloads. The growth in connected boxes also led to an increase in the number of transactions through Sky Store, with total movie transactions surpassing 3 million in the quarter, up 25% year on year. We continue to expand the availability of Sky Go, extending it to an additional 17 Android devices including the best-selling Samsung Galaxy S3 and the HTC One. This roll-out to new devices, combined with the addition of more live and on demand entertainment content, helped the service to reach 3.1 million unique users in the quarter, up 46% year on year. Stand-out successes in the quarter included 'An Idiot Abroad' Season 3 which attracted more than 850,000 on-demand views across the series. We will start to monetise this success in 2013 with the launch of Sky Go Extra, which, for an additional GBP5 a month, offers customers the added flexibility of registering up to four devices per account (two more than currently) and downloading content to watch offline. We are also developing new ways to distribute our content to customers with NOW TV, our new internet TV service. We continued to build awareness of the service, which currently provides access to Sky Movies, with the launch of a new marketing campaign in the quarter, registering 25,000 monthly pass customers at the end of December. We plan to develop NOW TV further with the launch of Sky Sports later this year, following a beta test of the service which started in December. Under the new offer, customers will get unlimited access for a 24-hour period to the full range of sports that we offer over all six Sky Sports channels for just GBP9.99. Improving service delivery and operational efficiency Greater operational efficiency across the organisation continues to deliver the dual benefits of improved customer service and cost savings for the business. The improvements are driving greater customer satisfaction and at the same time give us increased capacity to invest more in the areas where customers see most value. Market-leading customer service remained a key area of focus in the quarter. Over 70% of our customers now have our most reliable Sky+HD box, driving down annualised service rates by almost 90% versus four years ago. This has contributed to the lowest level of service visits in eight years, despite a 41% increase in the number of customers over that period. Improvements in service reliability have also led to a 15% reduction year on year in total calls to our contact centres. Meanwhile, improvements in our customer website have helped drive a 50% year-on-year increase in automated transactions. We expect to see further reductions in customer interactions following the introduction of our new 'Sky Hub' router in October, which provides additional capabilities to diagnose and fix faults remotely. As part of our drive to improve further the efficiency and effectiveness of our home service operation, we have agreed a deal to bring around 700 engineers that work for our outsource partner, AVC, in-house as Sky employees later in 2013. This will give us one integrated nationwide team of engineers all working under a single set of processes. We have also this month opened a new contact centre in Ireland where we are creating 900 new jobs to help us better serve our Irish customers. Our initiatives on service delivery helped Sky to come top in Ofcom's Customer Service Satisfaction survey in December 2012 across all three of fixed telephony, broadband and pay TV. We also received recognition of our leading service from the consumer group, uSwitch, winning four awards for best technical support, best customer service, most recommended broadband and best pay TV provider. Broader Contribution In December, we announced that Olympic gold medalist Jessica Ennis has become one of our inspirational ambassadors for Sky Sports Living for Sport, our free initiative to help improve confidence and attitudes to learning among secondary school children through sports participation. The project is reaching more young people than ever with over 1,000 schools taking part since September, a four-fold increase over the same time last year. Sky Skills Studios, our free learning experience for young people to go behind the scenes at Sky, has received over 3,500 visitors since launch in September. It is getting great feedback from teachers and children alike, and we expect to reach over 10,000 young people across the year. We also continue to invest in the Arts, both on air and in the community. The first of our Sky Arts Ignition Series where we collaborate with major arts organisations and artists to create new works, Sky Arts Ignition: Doug Aitken - The Source, continued at Tate Liverpool attracting over 50,000 visitors by the time it closed in mid January.We have just announced the second of our Sky Arts Ignition Series projects, the development of an exhibition called Sky Arts Ignition: Memory Palace in partnership with the V&A which will open to the public in June. DETAILED FINANCIAL PERFORMANCE We continue to deliver a strong financial performance. First half revenue growth of 5% and good discipline in keeping adjusted other operating costs flat helped to deliver adjusted operating profit growth of 8% to GBP647 million, and adjusted basic earnings per share of 28.3p, up 18%. Unless otherwise stated, all figures and growth rates included below exclude exceptional items. Exceptional items are discussed on page 9 and in Appendix 2. Revenue Group revenue increased by 5% to GBP3,533 million (2012: GBP3,364 millio n), with growth in both retail and wholesale operations more than offsetting reductions in the more cyclical businesses in advertising and pubs and clubs. Retail subscription revenue grew by 5% to GBP2,907 million (2012: GBP2,7 64 million), reflecting continued product and customer growth and the benefit of price increases which came into effect in September. The strong performance in retail more than offsets a first half decline in Sky Business revenues (pubs and clubs) which continue to face cyclical headwinds; although recent performance has shown signs of recovery. We delivered a strong performance in wholesale subscription revenue which increased by 14% to GBP194 million (2012: GBP170 million) as we continue to benefit from greater take-up of our premium channels and their HD versions on other platforms, together with the launch and success of our dedicated Formula 1 channel. Advertising revenue improved on the previous quarter to be down just 3% for the period at GBP215 million (2012: GBP222 million). We continued to increase our market share to reach 21%, with the majority of this growth underpinned by increased ratings for our media partner channels, with whom we share revenue upside. Installation, hardware and service revenue of GBP47 million was lower year-on-year (2012: GBP51 million) due to lower acquisition volumes and our work on product reliability and right-first-time installation rates. Other revenue increased by 8% to GBP170 million (2012: GBP157 million) d ue to continued strong performance from Sky Bet which saw an increase in unique users in the period, and the international programme sales revenue generated by Sky Vision. Direct Costs Programming costs increased by GBP113 million (10%) to GBP1,222 million (2012: GBP1,109 million) in line with our expectations. Sports accounted for GBP48 million of the increase which was predominantly due to the inclusion of Formula 1 and Ryder Cup rights not in the prior year together with the England and Sri Lankan cricket tours to India and Australia respectively. Movie costs increased GBP23 million year-on-year and included investment in expanded rights agreements to support new product offerings such as Sky Go Extra. Entertainment accounted for GBP3 0 million of the increase as we continued to invest in new and exclusive UK-commissioned content across our channel portfolio. Our work on network efficiency within our communications business resulted in excellent operating leverage in direct network costs, up only 4% to GBP348 million (2012: GBP336 million) despite a 19% increase in home communications products. Other Operating Costs We continued to focus on costs and once again delivered a strong performance, holding other operating costs flat in absolute terms year-on-year and generating a 200 basis point reduction of costs as a percentage of sales. Marketing costs were flat at GBP541 million (2012: GBP541 million) with lower cost route-to-market sales and lower acquisition volumes offsetting the cost of Sky+ and On Demand campaigns in the period and the marketing support for the launch of NOW TV. Subscriber management and supply chain costs were also held flat at GBP323 million (2012: GBP323 million) as we continue to benefit from lower service and repair costs as a result of deeper penetration of our most reliable Sky+HD box. We also generated savings from receiving fewer calls into the call centres as we focus on getting it right first time together with increased utilisation of the online self-help options. Transmission, technology and fixed network costs were down 1% at GBP193 million (2012: GBP194 million) as favourable renegotiation of supplier contracts offset the modest incremental cost of the Formula 1 channel transmission. Administration costs were held flat at GBP259 million (2012: GBP260 million). Exceptional Items Reported operating profit of GBP679 million includes an exceptional gain of GBP32 million within direct network costs relating to a credit note received from BT following an Ofcom determination which requires BT to repay monies to Sky for overcharged-for Ethernet services (backhaul) between 2006/07 and 2009/10. Ofcom's determination may be appealed in the Competition Appeal Tribunal. Subject to the outcome of any such appeal, we intend to ensure that our customers benefit from this decision by spending the majority of this on a one-time basis in customer-facing areas of the business in the second half of the year. Reported profit after tax of GBP487 million (2012: GBP441 million) includes an GBP8 million charge relating to the tax effect on exceptional items andgenerated reported basic earnings per share of 29.7 pence (2012: 25.3 pence). Please refer to Appendix 2 for a detailed reconciliation of reported and adjusted numbers. Cash generated from operations Adjusted free cash flow was 3% lower at GBP482 million (2012: GBP495 million) reflecting growth in adjusted EBITDA, lower interest and tax payments and lower capital expenditure, offset by a negative working capital variance as a result of increased commissioning of entertainment content and scheduling of payments for renewed sports rights deals. Capital expenditure of GBP207 million (2012: GBP237 million), was lower in the first half due to phasing in the comparative year; specifically, the autumn 2011 completion of the fit-out of Sky Studios and the acceleration of our exchange roll-out programme. Net debt increased to GBP1,201 million (2012: GBP615 million) primarily as a result of the approved share buy-back and 2011/12 final dividend. During the period, the Group took advantage of historically low pricing to raise $800 million from the issuance of guaranteed notes, maturing in November 2022 and with a 3.125% coupon. The Group's liquidity and headroom remain comfortable. For a reconciliation of net debt see Appendix 2. Distribution to Shareholders The Directors have declared an interim dividend of 11.00 pence per share (2012: 9.20p) representing an increase of 20% and the ninth consecutive year of an increase in the interim dividend for shareholders. As previously stated, our intention is to maintain a policy of paying out 50% of full year adjusted earnings as dividends with the final dividend payment typically forming the higher proportion of the total dividend. The ex-dividend date will be 27 March 2013 and the dividend will be paid on 23 April 2013 to shareholders of record on 2 April 2013. At the Company's AGM on 1 November 2012, Sky received shareholder approval to return a further GBP500 million of capital to shareholders via a share buy-back programme. For the six months to 31 December 2012, the Company repurchased for cancellation 54.8 million shares for total consideration of GBP414 million, partly pursuant to the GBP750 million authority approved at the 2011 AGM and partly under the new GBP500 million share buy-back programme. The closing share count at the end of the quarter was 1,620 million. CORPORATE Board changes The Company announces that Tom Mockridge resigned as a non-executive director and Chase Carey has been appointed a non-executive director of the Company on 30 January 2013. Mr Carey is currently the Deputy Chairman and Chief Operating Officer of News Corporation and serves on the supervisory board of Sky Deutschland AG. He was formerly President and Chief Executive Officer of DIRECTV, Inc and served on the Board of BSkyB as a non-executive director of Sky from 13 February 2003 to 10 February 2009. Competition Appeal Tribunal (CAT) On 8 August 2012, the Competition Appeal Tribunal (the "CAT") issued its judgment in the appeals against Ofcom's decision to impose wholesale must-offer obligations on Sky (the "Pay TV Judgment"). The CAT found that Ofcom's core competition concerns were unfounded and that accordingly Sky's appeal must be allowed. In November 2012, BT submitted a request to the CAT for permission to appeal the Pay TV Judgment to the Court of Appeal. If denied by the CAT, BT can apply to the Court of Appeal directly for permission. The CAT has listed an oral hearing for 6 February 2013 to determine how to dispose of the case, including dealing with setting aside the wholesale must-offer ("WMO") obligations, the monies paid by relevant wholesale customers into escrow on an interim basis (being the difference between the maximum price Sky may charge for Sky Sports 1 and Sky Sports 2 under the WMO obligations and Sky's rate card prices for the channels) and costs. The CAT will also determine the effect (if any) of any ongoing appeal by BT. At 31 December 2012, GBP27 million of cash is being held in the escrow account. Enquiries: Analysts/Investors: Edward Steel Tel: 020 7032 2093 Lang Messer Tel: 020 7032 2657 E-mail: [ investor-relations@bskyb.com ] Press: Alice Macandrew Tel: 020 7705 3000 Stephen Gaynor Tel: 020 7705 3000 E-mail: [ corporate.communications@bskyb.com ] There will be a presentation for analysts and investors at 9.00 a.m (GMT) at Allen & Overy, One Bishops Square, London, E1 6AD. CEO, Jeremy Darroch and CFO, Andrew Griffith, will present. Participants should register by contacting Camilla Regan on +44 20 7251 3801 or at [ camilla.regan@RLMFinsbury.com ] . There will be a separate conference call for US analysts and investors at 10.00 a.m. (EST). To register for this please contact Dana Diver at Taylor Rafferty on +1 212 889 4350. Alternatively you may register online by using the following link [ http://invite.taylor-rafferty.com/_bskyb/2013Q2CC/Default.htm ] . A live webcast of the UK and US call will be available to analysts and investors via the BSkyB website at [ http://www.sky.com/corporate ] . Replays will be subsequently available. Schedule 1 - KPI Summary All figures (000) FY10/11 FY11/12 FY12/13 unless stated Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Total 10,150 10,223 10,294 10,371 10,471 10,549 10,606 10,654 10,742 customers 10,096 10,147 10,187 10,213 10,253 10,268 10,288 10,308 10,333 Television NOW TV - - - - - - - - 25 Sky+HD 3,497 3,686 3,822 3,925 4,063 4,222 4,343 4,468 4,561 Multi- room 2,219 2,237 2,250 2,295 2,350 2,378 2,402 2,423 2,467 Broad- band 3,006 3,161 3,335 3,485 3,651 3,863 4,001 4,103 4,235 Tele- phony 2,757 2,916 3,101 3,248 3,407 3,627 3,768 3,888 4,022 Line 2,215 2,444 2,680 2,892 3,106 3,376 3,563 3,708 3,870 Rental Total paid-for 23,790 24,591 25,375 26,058 26,830 27,734 28,365 28,898 29,513 subscription products Connected 204 442 604 995 1,255 1,715 HD boxes Sky Go 1,625 2,107 2,607 2,740 2,768 3,066 unique users Total 27,887 29,379 30,945 32,100 32,921 34,294 Products Other metrics Triple- play % 24% 26% 27% 28% 29% 31% 32% 33% 33% ARPU(GBP)GBP536 GBP537 GBP538 GBP535 GBP544 GBP546 GBP548 GBP550 GBP568 Churn 9.5% 10.4% 10.4% 11.1% 9.6% 10.1% 9.9% 10.9% 10.3% Fixed Network Metrics On-net base 2,659 2,856 3,045 3,205 3,403 3,636 3,778 3,882 4,031 MPF base 1,247 1,435 1,686 1,869 2,146 2,423 2,588 2,762 2,926 SMPF base 1,412 1,421 1,359 1,336 1,257 1,213 1,190 1,120 1,105 MPF % 47% 50% 55% 58% 63% 67% 69% 71% 73% SMPF % 53% 50% 45% 42% 37% 33% 31% 29% 27% Off-net base 347 305 290 280 248 227 223 221 204 Total 3,006 3,161 3,335 3,485 3,651 3,863 4,001 4,103 4,235 Broadband On-net % 88% 90% 91% 92% 93% 94% 94% 95% 95% Total no. of LLU 1,434 1,549 1,577 1,732 1,907 1,964 1,965 2,036 2,108 exchanges Related Party Transactions Details of transactions with related parties during the six month period to 31 December 2012 are provided in Appendix 1. Principal risks and uncertainties A summary of the Group's principal risks and uncertainties is provided in Appendix 3. Responsibility statement The directors confirm that to the best of their knowledge: * The unaudited condensed consolidated interim financial statements have been prepared in accordance with IAS 34 as adopted by the EU. * The interim management report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R of the Disclosure and Transparency Rules. The directors of British Sky Broadcasting Group plc are listed on pages 40-41 of the 2012 Annual Report. At the Company's AGM on 1 November 2012 Jacques Nasser retired from the Board and on 30 January 2013 Tom Mockridge retired from the Board. On 16 November 2012 Dave Lewis was appointed to the Board as an Independent Non-Executive Director and on 30 January 2013 Chase Carey was appointed to the Board as a Non-Executive Director. By order of the Board Jeremy Darroch Chief Executive Officer Use of measures not defined under IFRS This press release contains certain information on the Group's financial position, results and cash flows that have been derived from measures calculated in accordance with IFRS. This information should not be read in isolation from the related IFRS measures. Forward looking statements This document contains certain forward looking statements with respect to the Group's financial condition, results of operations and business, and our strategy, plans and objectives for the Group. These statements include, without limitation, those that express forecasts, expectations and projections, such as forecasts, expectations and projections in relation to new products and services, the potential for growth of free-to-air and pay television, fixed line telephony, broadband and bandwidth requirements, advertising growth, DTH and OTT customer growth, On Demand (previously Anytime+), NOW TV, Sky Go, Sky+HD and other services penetration, revenue, administration costs and other costs, advertising growth, churn, profit, cash flow, products and our broadband network footprint, content, wholesale, marketing and capital expenditure and proposals for returning capital to shareholders. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, these statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or implied or forecast in the forward looking statements. These factors include, but are not limited to, those risks that are highlighted in the document in Appendix 3 -"Principal risks and uncertainties." All forward looking statements in this document are based on information known to the Group on the date hereof. The Group undertakes no obligation publicly to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Glossary of Terms A glossary of terms is included within the Annual Report and on our corporate investor relations web page at [ http://corporate.sky.com/ ] investors/glossary. Copies of the Annual Report are available from the British Sky Broadcasting Group plc web page at [ www.sky.com/corporate ] and in hard copy from the Company Secretary, British Sky Broadcasting Group plc, Grant Way, Isleworth, Middlesex TW7 5QD. Click on or paste the following link into your web browser to view associated PDF document. [ http://www.rns-pdf.londonstockexchange.com/rns/7521W_-2013-1-30.pdf ] This information is provided by RNS The company news service from the London Stock Exchange END