1. British Sky Broadcasting Group plc Interim Results 9 February 20001

2. Over 4 million direct-to-home subscribers
Best ever quarterly net growth in BSkyB’s
10 year history 3

3. Record growth 500,000 new subscribers Improved pay to basic
Reduced churn

4. DTH subscribers

5. Sky Digital Subscribers

6. Sky Digital Subscribers
2.3 million subscribers

7. Proportion of New Increasing
57%
46% Q1 Q2

8. Subscribers by Platform

9. Lower analogue churn digital churn of 2%

10. New state of the art digital customer contact centres

11. Subscribers by Platform

12. Turnover

13. DTH Subscription Revenue
1998/99
1999/00
£486.4 m
£535.8 m
1998/99
1999/00

14. Two thirds on top tier

15. Action to increase buy rates

16. Cable / DTT Subscription Revenue
1998/99
1999/00
£116.1 m
£147.9 m
1998/99
1999/00

17. Advertising Revenue
1998/99
1999/00
£103.0 m
£113.5 m
1998/99
1999/00

18. Increased share of viewing in digital homes
Advertising
Increased share of viewing in digital homes

19. Costs

20. Programme Costs

21. Programming Costs - Sport
UEFA Cup, Ryder Cup and Premier League

22. Programming Costs - Movies
8% increase in movie subscribers
12 multiplexed movie channels

23. $5 million advance revenues
Programming Costs - Sky Pictures
$5 million advance revenues

24. 42% spent on own productions
Programming Costs - Entertainment
42% spent on own productions

25. Marketing

26. Cost of acquiring 700,000 new subscribers
Marketing
Cost of acquiring 700,000 new subscribers

27. Costs

28. Operating Profit
£107.2 m
£27.8 m
1998/99
1999/00

29. Joint Ventures

30. Sky Ventures Reduced losses More channels profitable
New media opportunities

31. Cashflow

32. £27 million of investments

33. Net Debt
£ million

34. Continuing to build scale

35. Innovation Technology Instant PPV E-commerce E-mail on TV
Interactivity
SkySports Extra
Funding
Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999);
Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share);
Subsidy
BiB have contributed £209 of subsidy to date (£99m for six months to December 1999);
Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board;
Results
Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

36. European Expansion 24% Kirch PayTV 2.2 million subscribers
59% (1.3 million) now subscribing to the digital platform
Kirch forecast a total of 4 million subscribers by 2002
Funding
Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999);
Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share);
Subsidy
BiB have contributed £209 of subsidy to date (£99m for six months to December 1999);
Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board;
Results
Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

37. Key Focal Points Take-up of digital Improve customer service
First European expansion First European expansion
First European expansion
Key Focal Points
Take-up of digital
Improve customer service
Focus on content
New Media 7

38. Digital Take-up 2.6 million digital DTH sales Funding
Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999);
Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share);
Subsidy
BiB have contributed £209 of subsidy to date (£99m for six months to December 1999);
Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board;
Results
Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.
2.6 million digital DTH sales

39. Customer Service Sky Services - Achievements to Date
Funding
Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999);
Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share);
Subsidy
BiB have contributed £209 of subsidy to date (£99m for six months to December 1999);
Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board;
Results
Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.
81.5k installations week before Christmas
57k average installs per week, 6 months to December 1999
Approximately 1 million calls answered per week

40. Great service cannot be an optional extra
Customer Service
Great service cannot be an optional extra 10

41. Customer Service
Key priority

42. Contact Centre - Creation
Multi-platform
E-enabled
Data mining
Funding
Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999);
Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share);
Subsidy
BiB have contributed £209 of subsidy to date (£99m for six months to December 1999);
Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board;
Results
Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

43. Contact Centre - Payback
Improved customer
service
Retention
Improved PTB
Additional new revenue
streams
Funding
Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999);
Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share);
Subsidy
BiB have contributed £209 of subsidy to date (£99m for six months to December 1999);
Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board;
Results
Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

44. Original Production 8 Sky picture productions
212 Original shows/episodes in 6 months to December 99
Funding
Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999);
Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share);
Subsidy
BiB have contributed £209 of subsidy to date (£99m for six months to December 1999);
Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board;
Results
Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

45. Original Production
Oklahoma! - Emmy winner in the ‘Performing Arts’ category
Saving Grace - Winner of ‘World Cinema Audience Award’ at Sundance Film Festival
Funding
Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999);
Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share);
Subsidy
BiB have contributed £209 of subsidy to date (£99m for six months to December 1999);
Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board;
Results
Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

46. Award winning international coverage
Sky News
Award winning international coverage
Funding
Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999);
Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share);
Subsidy
BiB have contributed £209 of subsidy to date (£99m for six months to December 1999);
Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board;
Results
Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

47. Sky Sports Ryder Cup International Cricket Funding
Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999);
Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share);
Subsidy
BiB have contributed £209 of subsidy to date (£99m for six months to December 1999);
Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board;
Results
Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

48. Sky Sports Extra Over 36% of Sky’s football viewers use this service
Expansion of service:
now covers Rugby Six Nations
Cricket and Golf to follow shortly
Funding
Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999);
Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share);
Subsidy
BiB have contributed £209 of subsidy to date (£99m for six months to December 1999);
Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board;
Results
Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

49. Sky Sports Ventures Investments in: Premier League First Division
Leeds Sporting
Manchester Utd
Sunderland
First Division
Manchester City
Funding
Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999);
Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share);
Subsidy
BiB have contributed £209 of subsidy to date (£99m for six months to December 1999);
Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board;
Results
Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

50. Consolidation and expansion of
Sky New Media Ventures
Consolidation and expansion of
New Media division 19

51. Sky New Media Ventures Successful launch of Open….
8 million visits to Open… in first two months of launch
Over 125,000 orders
Peak sales exceeding £1 million per week
Nearly 80% awareness amongst Sky Digital customers
Funding
Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999);
Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share);
Subsidy
BiB have contributed £209 of subsidy to date (£99m for six months to December 1999);
Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board;
Results
Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

52. Sky New Media Ventures Position in the market place SkySports.com
3rd most visited sports site
Sky.com
Top 10 general site
Funding
Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999);
Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share);
Subsidy
BiB have contributed £209 of subsidy to date (£99m for six months to December 1999);
Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board;
Results
Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

53. Sky New Media Ventures Short Term Objectives
Focus on positioning SkySports.com as number one sports site within 12 months
Further development of movies, news and entertainment sites
Funding
Sky’s share of BiB funding to date is £80m; (£35m for six months to December 1999);
Maximum Cash requirement now estimated at £400m (of which Sky take a 32.5% share);
Subsidy
BiB have contributed £209 of subsidy to date (£99m for six months to December 1999);
Proposal to accelerate BiB subsidy in line with Sky’s budgeted volumes has been accepted by the BiB board;
Results
Sky’s share of BiB operating losses to date is £95m, (£46m for the six months to December 1999), accounted for as ‘Share of Joint Venture Losses’ below the ‘Operating Profit’ line.

54. Sky New Media Ventures Future News Entertainment Sports PC platform
TV platform
User
PC POP
Mobile platform
Phone POP
Broad-band
POP TV
Broadband platform
News
Entertainment
Sports

55. Sky New Media Ventures £250 million investment in new media and
e-commerce over the next 18 months

56. Summary Driving subscriptions Enhancing competitive advantage
Continued delivery of content
Adding value, building loyalty 21

57. British Sky Broadcasting Group plc Interim Results 9 February 20001