BSkyB profits put pressure on suitor to increase offer

News Corp has offered to buy the 61 per cent of BSkyB it does not own and faces a six-month competition inquiry if it cannot allay fears such a move will give it too much media control.

As the firm consistently posts strong results, analysts say the pressure will only increase for News Corp to up its bid, and the deal has potentially been further complicated by a hacking scandal at one of News Corp's tabloid newspapers.

BSkyB, one of the most successful pay-TV groups in Europe, is adding new customers at a heady rate and selling them an increasing number of products, while the benefits of an investment cycle and cost-saving programme have kicked in.

"Today's results will increase the pressure on News Corp to raise its offer above BSkyB's requested 800p (per share)," Evolution Securities analyst Steve Malcolm said. News Corp has offered 700p per share. "We're in over 10 million homes," said BSkyB chief executive Jeremy Darroch.

"We sold 1.2 million subscription products in the second quarter, that's one every seven seconds."

The strong demand lifted first-half adjusted operating profit 26 per cent to 520m.

"In recognition of the growing strength of the business, we are increasing the interim dividend by a further 11 per cent, the seventh consecutive year of growth," BSkyB said.

Evolution added that 15 per cent revenue growth and 26 per cent operating profit growth represented an excellent performance in a challenging consumer environment.

The results underline the need for Mr Murdoch to secure his deal as soon as possible.

The Government is considering unspecified proposals put forward by News Corp to alleviate competition concerns before deciding whether to refer the proposed deal for a full inquiry.

News Corp also owns around a third of the British newspaper market, including The Sun and the Times, which both supported Prime Minister David Cameron in the last election.

The deal has been complicated by a scandal at News Corp's Sunday title News of the World. Its journalists stand accused of hacking celebrities and politicians' phones to secure stories.

In the three months to end-December, Sky added 140,000 net new subscribers, towards the lower end of forecasts.

It sold 343,000 high-definition TV and 204,000 broadband packages, its strongest broadband growth for more than two years.

BskyB also owns Skybet, which has around 220 employees in Leeds.