BSkyB has announced that it will delist from the New York Stock Exchange. The satellite TV provider will also deregister from the US Securities and Exchange Commission.
The company’s presence on the NYSE is minimal. Its NYSE listing is held in American…
BSkyB has announced that it will delist from the New York Stock Exchange. The satellite TV provider will also deregister from the US Securities and Exchange Commission.
The company’s presence on the NYSE is minimal. Its NYSE listing is held in American Depositary Shares, which represent four ordinary BSkyB shares each and account for just 2% of its shareholding.
BSkyB said that it has taken this step because it no longer believes it appropriate from a cost and administrative perspective to retain its SEC registration and NYSE listing.
BSkyB maintains the ADS listing as a level 1 ADR program, to be traded on the US over-the-counter-market. It has not arranged for any specific listing, but anticipates the ADSs will be traded on OTCQX, the highest tier for this kind of trading.
BSkyB compromises on Ofcom ruling
BSkyB has agreed an interim arrangement with UK regulator Ofcom that will see it sell its premium sports channels to rivals at lower prices.
Following Ofcom’s April ruling to this effect, BSkyB has agreed to a compromise whereby it will continue to offer other broadcasters the content at its current price, but that all excess proceeds shall be placed in an escrow account pending a BSkyB appeal against the verdict.
If BSkyB wins the appeal it shall receive the escrow money, and if it loses, the revenue will be shared out amongst the buyers.
In agreeing to these terms, BSkyB has dropped the initial appeal it made to the Competition Appeals Tribunal. It will now prepare a more in-depth appeal that it plans to file to the Tribunal in early June.
The agreement means that from May 14, Virgin Media, British Telecom and Top-up TV will have access to Sky Sports 1 and 2 at what is likely to be a lower price in the long run.
BSkyB recorded explosive growth in its High Definition offering in its Q3 results, announcing the addition of 428,000 new households. HD users now account for more than 25% of BSkyB’s subscriber base.
This performance drove a 10% revenue increase year-on-year to £4.4bn for the first nine months of 2009/10. Adjusted operating profit for the same period rose by 5% to £618m.
Significantly, BSkyB’s adjusted revenue per user (ARPU) rose by 11% to break the £500 mark for the very first time.
