UK pay-television broadcaster BSkyB spent an additional £55m (€64.8m/$88.1m) on marketing its services in the first quarter of the 2013-14 financial year as it sought to address the entrance of telecommunications company BT into the sports broadcast market.
Sky’s financial results for the three months through to September 30, 2013 revealed that marketing costs rose to £320m in the quarter.
This period coincided with the launch of the BT Sport pay-television service in August, with BT offering free sports content, including English Premier League football games, to its broadband customers.
Sky said that it added 37,000 new television customers during the quarter, up on the 20,000 figure for the equivalent period last year.
Group revenue increased by seven per cent to £1.8bn, but the battle with BT has led to adjusted operating profit dropping by eight per cent to £285m.
Commenting on costs, Sky said that under its new three-year Premier League rights deal, which came into effect this financial year and runs through the 2013-14 to 2015-16 seasons, it paid a year-on-year increase of around £220m that will not recur in future periods.
Sky added that Sky Sports viewing increased by almost 15 per cent in the quarter, reflecting the strength of the summer schedule and a record start to the Premier League season.
Sky has introduced Saturday evening games to its schedules this season and audiences for the first 23 live Premier League games were up 20 per cent on last year.