BSkyB seeks new initiatives and offers investors an improving dividend

As BSkyB reports positive Q4 results Graham Spooner, investment research analyst at The Share Centre, explains what these mean for investors and why he recommends investors ‘buy' BSkyB.

"This morning, BSkyB reported a solid set of results with revenues ahead of consensus and a rise in full year profits. Investors will be pleased to hear the full year dividend has been increased by 18% to 30p per share and the company has announced plans for further share buy backs.
 
"Pressures on consumers remain and increasing competition from the likes of BT means the company is not standing still and is investing in new initiatives to continue the group's growth. Whilst this may hit forecasts in the short term investors should be pleased to see the company's attempt to stay ahead of competition.
 
"We continue to recommend medium risk investors ‘buy' BSkyB, the company offers a balanced return on the back of its improving dividends and growth potential. The average revenue per user continues to creep up and now stands at £577 and the customer base is increasing. 
 
"With data from The Share Centre's Profit Watch UK showing BskyB comprises 28% of the sector's net profits, and a quarter of its revenues, today's result point to further positivity for the sector."