Embattled broadcaster BSkyB today insisted it was 'fit and proper to hold its broadcasting licences' as the fall out from the News Corporation hacking scandal continues.
The defence came as the company reported record nine-month operating profit, driven by strong broadband growth.
In April media regulator Ofcom said it was gathering evidence as part of an on-going assessment of whether BSkyB should keep its broadcasting licences, focusing in particular on hacking allegations at Rupert Murdoch's UK newspaper business, News International.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
BSkyB pointed to "its positive contribution to UK audiences, employment and the broader economy, as well as its strong record of regulatory compliance and high standards of governance".
It said that it had completed a review of editorial practises at Sky News and found "no evidence of impropriety or cause for concern".
Rupert Murdoch's News Corporation currently owns 39% of BSkyB, but Ofcom could force it lower that stake.
Yesterday a group of MPs on the Culture Media and Sport Select Committee concluded that Murdoch was "not a fit person to exercise the stewardship of a major international company".
"If at all relevant times, Rupert Murdoch did not take steps to become fully informed about phone-hacking, he turned a blind eye and exhibited wilful blindess to what was going on in his companies and publications," their report said.
"This culture, we consider, permeated from the top throughout the organisation and speaks volumes about the lack of effective corporate governance at News Corporation and News International."
BSkyB's 'fit and proper' defence came as it reported results for the nine months to the end of March.
In the most recent quarter it said it had added 78,000 net new households to reach 10.55 million customers.
It reported its strongest ever quarter for home communications with 702,000 net broadband, telephony and line rental products added.
The company said adjusted basic earnings per share were up 24% to 37.8p over the nine month period.
Revenues were up five per cent to £5.078bn, with profits coming in £939m, up 25%.
-
Family must pay £176k inheritance tax bill due to common gifting error – how you can avoid itGiving gifts can reduce inheritance tax liabilities, but it’s important to avoid falling foul of the rules
-
Is a mortgage in retirement always a bad idea?A mystery shopper exercise shows high street lenders are “shunning” retirees looking to take out a mortgage. Are they right to do so?
