Event Brief of Results for the three months ended 30 September 2006 Conference Call with UK / European Analysts and Investors - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

PARTICIPANTS

. Jeremy Darroch, British Sky Broadcasting Group, CFO . James Murdoch, British Sky Broadcasting Group, CEO . Paul Howard, Cazenove, Analyst

. Julien Roch, Merrill Lynch, Analyst . Bridie Barrett, ABN Amro, Analyst . Mark Sugarman, Citigroup, Analyst . Matthew Walker, Lehman Brothers, Analyst . Paul Reynolds, Deutsche Bank, Analyst . Nick Bertolotti, Credit Suisse, Analyst . Rogan Angelini-Hurll, Citigroup, Analyst . Daniel Kerven, UBS, Analyst . Redwan Ahmed, Oriel Securities, Analyst

OVERVIEW

BSY.L reported group revenues for the three months ended 09/30/06 of GBP1.1b and adjusted EPS for the three months ended 09/30/06 of GBP0.063.

FINANCIAL DATA

A. Key Data From Call 1. Group revenues for the three months ended 09/30/06 = GBP1.1b. 2. Adjusted EPS for the three months ended 09/30/06 = GBP0.063. 3. CapEx for the three months ended 09/30/06 = GBP78m.

4. Stock buyback during the three months ended 09/30/06 = GBP211m.

PRESENTATION SUMMARY

S1. Business Review (J.M.) 1. Highlights: 1. Delivered highest 1Q subscriber growth in three years. 2. Demand is increasing for the whole portfolio of services. 3. More and more families are choosing Sky. 4. Seeing higher penetration of newer products.

5. Made strong start to entry into broadband and telephony with

around 1m registrations. 6. Products are attracting new customers to services. 1. Will increase the loyalty of existing customers going forward. 2. Results: 1. Underlying strength of the television business is allowing BSY.L to expand into new areas of growth. 2. Revenues grew strongly. 3. Underlying growth in EBITDA provided the engine room for investment in new services. 3. Operational Highlights: 1. Seeing strong demand for a broad range of products. 2. New Sky subscriptions were 14% higher, 325,000. 1. Net additions increased by 44% YonY to 82,000.

3. Nearly one in four Sky customers now take more than one

service from the Co. 4. Sky+ has now reached 1.7m households.

1. Represents more than 20% of the Co.'s customer base. 1. Ahead of expectations. 5. HD subscribers more than doubled in the qtr. to 96,000. 1. Fastest ever customer take-up of an additional BSY.L product. 6. Multiroom households are now 13% of the Co.'s subscriber base. 1. Grew by 46,000 in the qtr. 4. Sky Broadband Launch: 1. Sky Broadband launch has gone very well. 2. Emphasis on customer services and managing demand has been successful in delivering: 1. 1m registrations. 2. 74,000 customers. 1. 88% are unbundled lines. 2. 83% connected within 15 working days.

5. Churn & ARPU: 1. Has not see the beneficial impact on churn and ARPU from new services. 2. Churn was 11.8%, 0.1% above prior year. 1. Reflects seasonality of the business and the impact of Sept. retail price increase. 3. ARPU was GBP385, down GBP6 from the previous qtr. 1. Reflects a number of one-off and facing items and higher volume of customers on short-term promotional offers.

4. Expects APRU to grow strongly during the year, reflecting:

1. Full benefit of retail price rise. 2. Increased product penetration. 3. Reduction in the number of short-term promotional offers. 1. BSY.L will be transitioning away from these and towards an emphasis on broadband and telephony in the promotional mix, which will also have a beneficial impact on retention. 6. Programming:

1. Recently secured a range of new programming agreements.

1. Three year live and exclusive rights for Spanish football, La Liga. 2. A new four-year agreement to broadcast the NFL.

3. Ten year live and exclusive rights for the PGA Championship in golf. 4. Exclusive UK rights for the third and fourth seasons of Lost. 2. In high definition, BSY.L launched Sky Sports 2 in HD and The History Channel in HD. 3. Expanded distribution of Sky Mobile TV service by reaching agreement with Orange and 3, in addition to the existing distribution agreement with Vodafone.

7. Summary: 1. Seeing continued benefit from the investment in service and brands since 2004. 2. New services are tapping into a rich stream of demand.

S2. Financial Review (J.D.) 1. Highlights: 1. Group revenues increased by 11% to GBP1.1b. 2. GM for the TV business increased by a further 3 percentage points to 62% of sales. 3. EBITDA increased by 8% to GBP258m, excluding the impact of the Easynet and broadband rollout of GBP34m. 4. Operating profit of GBP180m, reflected broadband and telephony investments. 5. Cash generation was strong in a seasonally high qtr. for working capital outflows and despite investment in both broadband and telephony. 2. Revenue: 1. Within overall revenues of GBP1.1b: 1. DTH revenues increased by a healthy 6% to GBP792m. 1. Driven primarily by 5% growth in the avg. number subscribers. 2. Cable revenues fell by 2% with the levels of new premium cable customers continuing to disappoint.

3. Advertising revenues fell 4% in the qtr., reflecting the challenging market conditions in the UK. 1. UK TV advertising market contracted by 8% over the same time period and is expected to fall by 7% for calendar 2006. 2. Overall share performance increased and the group expects to continue to outperform the market for the remainder of this calendar year. 3. Other revenues more than doubled to [GBP116m]. 1. Driven by the inclusion of Easynet and broadband as well as higher install revenues, which saw a corresponding increase in supply chain costs within subscriber management. 3. Costs & GM: 1. Continued to make good progress within programming costs, both in absolute terms and as a percentage of sales, despite investment in high quality sports rights in the qtr.

1. GM expanded by 3% on a like-for-like basis. 2. Other costs were heavily impacted by the consolidation of Easynet and the investment in broadband. 1. Marketing costs grew by GBP22m to GBP161m. 1. Reflected strong growth in a number of new customers and

the launch investment in broadband. 2. Subscriber management costs increased by GBP55m to GBP151m driven by: 1. Inclusion of Easynet and broadband related costs. 2. GBP10m higher depreciation charge relating to the installation of new CRM systems. 3. Good growth in new customers and new product penetration, which had a corresponding increase in other revenues. 4. Increased call center resources where BSY.L added more staff. 3. Transmission and administration costs increased …