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ANALYST VIEWS: HAS BSKYB IMPRESSED THE MARKET WITH ITS FULL-YEAR RESULTS?

<strong>RICHARD HUNTER </strong> HARGREAVES LANSDOWN<br />BSkyB has again confounded its doubters by posting numbers which belie the current environment. The spectres of fierce competition and rising unemployment both drag on prospects, but Sky continues to deliver in a marketplace in which it has pre-eminent experience, and the share price performance has reflected this.<br /><br /><strong>PAUL RICHARDS </strong> NUMIS SECURITIES<br />We were particularly encouraged to note churn falling to and very robust demand for HD. The higher costs associated with the stronger than forecast operational performance lead to earnings of &pound;780m coming in marginally below our forecast of &pound;788m, but we are not changing our 2010/11 forecasts now.<br /><br /><strong>ANDY VINER </strong> BDO STOY HAYWARD<br />It is very impressive in the current economic backdrop that Sky has been able to attract so many new HD customers, keep churn numbers level, add a reasonable amount to average revenue per user (ARPU) and do all of this with minimal impact on its margins. It is a good indication of the strength of its brand.