Satellite broadcaster BSkyB today gave shareholders a boost by disclosing its first dividend in more than five years.

The group said it was resuming payments "in light of its financial health" as it posted profits of £130 million for the six months to December 31, against £12 million a year ago.

The improvement in profits came as revenues surged 17% to £1.77 billion, fuelled by double-digit growth in the number of customers paying for its digital TV packages.

BSkyB said advertising revenues of £147 million were higher than the market average and income from interactive services had grown 62% to £147 million during the period.

It added 193,000 digital subscribers in the final three months of 2003 to give it a base of 7.2 million, putting it on course for eight million customers by the end of next year.

For the first time, more than 50% of households with a TV in the UK and Ireland have access to one or more Sky channels as the company benefited from a boom in freeview set-top boxes.

Chief executive James Murdoch said: "These results show a business that continues to improve. We enter our second half with good momentum, robust financial health and a full programme of work."

Wednesday February 11, 2004