FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Issuer Pursuant to Rule 13a - 16 or 15d - 16 of the Securities Exchange Act of 1934 For the month of January 2007 31 January 2007 BRITISH SKY BROADCASTING GROUP PLC (Name of Registrant) Grant Way, Isleworth, Middlesex, TW7 5QD England (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F Form 20-F X Form 40-F Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934 Yes No X If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not Applicable This report is incorporated by reference in the prospectus contained in the Registration Statements on Form F-3 (SEC File No. 333-08246) and Form F-3/S-3 (SEC File No. 333-106837) filed by the Registrant under the Securities Act of 1933. EXHIBIT INDEX Exhibit EXHIBIT NO. 1 Press release of British Sky Broadcasting Group plc announcing US Accounting Release released on 31 January 2007 Consolidated Income Statement for the half year ended 31 December 2006 2006/07 2005/06 2005/06 Half year Half year Full year GBP million GBP million GBP million Notes (unaudited) (unaudited) (audited) ------------------------------------------------------------------------------------------ Revenue 2 2,220 2,016 4,148 Operating expense 3 (1,825) (1,602) (3,271) Operating profit 395 414 877 ------------------------------------------------------------------------------------------ Share of results of joint ventures and associates 6 7 12 Investment income 24 20 52 Finance costs (69) (51) (143) Profit before tax 356 390 798 ------------------------------------------------------------------------------------------ Taxation (110) (116) (247) Profit for the period 246 274 551 ------------------------------------------------------------------------------------------ Earnings per share from profit for the period (in pence) Basic 4 14.0p 14.9p 30.2p Diluted 4 14.0p 14.9p 30.1p ------------------------------------------------------------------------------------------ Consolidated Statement of Recognised Income and Expense for the half year ended 31 December 2006 2006/07 2005/06 2005/06 Half year Half year Full year GBP million GBP million GBP million (unaudited) (unaudited) (audited) ------------------------------------------------------------------------------------------ Profit for the period 246 274 551 ------------------------------------------------------------------------------------------ Loss on available for sale investments (207) - - ------------------------------------------------------------------------------------------ Net movement in hedging reserve Cash flow hedges 21 1 (54) Tax on cash flow hedges (6) - 16 15 1 (38) ------------------------------------------------------------------------------------------ Total recognised income and expense for the 54 275 513 period ------------------------------------------------------------------------------------------ Consolidated Income Statement for the three months ended 31 December 2006 2006/07 2005/06 Three months Three months ended 31 December ended 31 December GBP million GBP million (unaudited) (unaudited) ------------------------------------------------------------------------------- Revenue 1,149 1,050 Operating expense (934) (851) Operating profit 215 199 ------------------------------------------------------------------------------- Share of results from joint 4 5 ventures and associates Investment income 10 12 Finance costs (39) (26) Profit before tax 190 190 ------------------------------------------------------------------------------- Taxation (60) (56) Profit for the quarter 130 134 ------------------------------------------------------------------------------- Earnings per share from profit for the quarter (in pence) Basic and diluted 7.4 7.3 ------------------------------------------------------------------------------- Consolidated Balance Sheet as at 31 December 2006 31 December 31 December 30 June 2006 2005 2006 GBP million GBP million GBP million Notes (unaudited) (unaudited) (audited) ------------------------------------------------------------------------------- Non-current assets Goodwill 659 417 637 Intangible assets 209 221 218 Property, plant and equipment 593 349 519 Investments in joint ventures and 31 29 28 associates Available for sale investments 771 52 2 Deferred tax assets 79 79 100 Derivative financial assets - 13 - 2,342 1,160 1,504 ------------------------------------------------------------------------------- Current assets Inventories 609 568 324 Trade and other receivables 568 389 489 Short-term deposits 202 764 647 Cash and cash equivalents 402 889 816 Derivative financial assets 6 29 7 1,787 2,639 2,283 ------------------------------------------------------------------------------- Total assets 4,129 3,799 3,787 ------------------------------------------------------------------------------- Current liabilities Borrowings 548 174 163 Trade and other payables 1,469 1,376 1,247 Current tax liabilities 140 116 82 Provisions 4 6 6 Derivative financial liabilities 36 26 49 2,197 1,698 1,547 ------------------------------------------------------------------------------- Non-current liabilities Borrowings 1,751 1,854 1,825 Other payables 63 23 66 Provisions 18 - 19 Derivative financial liabilities 245 80 209 2,077 1,957 2,119 ------------------------------------------------------------------------------- Total liabilities 4,274 3,655 3,666 ------------------------------------------------------------------------------- Shareholders' (deficit) equity 6 (145) 144 121 ------------------------------------------------------------------------------- Total liabilities and 4,129 3,799 3,787 shareholders' (deficit) equity ------------------------------------------------------------------------------- Consolidated Cash Flow Statement for the half year ended 31 December 2006 2006/07 2005/06 2005/06 Half year Half year Full year GBP million GBP million GBP million Notes (unaudited) (unaudited) (audited) ----------------------------------------------------------------------------------------- Cash flows from operating activities Cash generated from operations 365 514 1,004 Interest received 32 16 43 Taxation paid (39) (76) (172) Net cash from operating activities 358 454 875 ----------------------------------------------------------------------------------------- Cash flows from investing activities Dividends received from joint ventures and 4 3 7 associates Net funding to joint ventures and - (1) (2) associates Purchase of property, plant and equipment (131) (58) (169) Purchase of intangible assets (27) (36) (43) Purchase of available-for-sale investments (975) (51) - Decrease (increase) in short-term deposits 445 (570) (453) Purchase of subsidiaries (net of cash and (19) - (209) cash equivalents purchased) Net cash used in investing activities (703) (713) (869) ----------------------------------------------------------------------------------------- Cash flows from financing activities Proceeds from borrowings 550 1,014 1,014 Repayment of borrowings (191) - - Proceeds from disposal of shares in 8 7 13 Employee Share Ownership Plan ("ESOP") Purchase of own shares for ESOP (13) - (17) Purchase of own shares for cancellation (214) (240) (408) Interest paid (92) (44) (105) Dividends paid to shareholders (117) (92) (191) Net cash (used in) from financing (69) 645 306 activities ----------------------------------------------------------------------------------------- Effect of foreign exchange rate movements - - 1 Net (decrease) increase in cash and cash (414) 386 313 equivalents ----------------------------------------------------------------------------------------- Cash and cash equivalents at the beginning 816 503 503 of the period Cash and cash equivalents at the end of 402 889 816 the period ----------------------------------------------------------------------------------------- Notes to the interim financial statements 1 Basis of preparation The financial information set out in this press release does not constitute statutory financial statements for the half years ended 31 December 2006 or 2005, for the purpose of the Companies Act 1985. Statutory financial statements for the year ended 30 June 2006 have been filed with the Registrar of Companies. The Group's auditors have reported on those accounts; their reports were unqualified and did not contain statements under s. 237(2) or (3) Companies Act 1985. Whilst the financial information included in this press release has been prepared in accordance with International Financial Reporting Standards ("IFRS"), this announcement does not itself contain sufficient information to comply with IFRS. 2 Revenue 2006/07 2005/06 2005/06 Half year Half year Full year GBP million GBP million GBP million (unaudited) (unaudited) (audited) -------------------------------------------------------------------------------- Retail subscription 1,638 1,557 3,157 Wholesale subscription 109 112 224 Advertising 171 171 342 Sky Bet 20 16 37 Installation, hardware and 119 70 131 service Other 163 90 257 2,220 2,016 4,148 -------------------------------------------------------------------------------- To provide a more relevant presentation, management has chosen to re-analyse the revenue categories from those previously reported. Other revenue now principally includes income from Easynet Enterprise, Sky Active and technical platform service revenue. 3 Operating expense 2006/07 2005/06 2005/06 Half year Half year Full year GBP million GBP million GBP million (unaudited) (unaudited) (audited) -------------------------------------------------------------------------------- Programming 748 810 1,599 Transmission and related functions 181 87 234 Marketing 375 332 622 Subscriber management 313 219 468 Administration 208 154 348 1,825 1,602 3,271 -------------------------------------------------------------------------------- Included within programming for the half year ended 31 December 2006 is a GBP65 million credit due to the Group arising from certain contractual rights under one of the Group's channel distribution agreements. This item was previously disclosed as a contingent asset in the Group's June 2006 financial statements. Included within administration for the half year ended 31 December 2006 is GBP6 million of expense relating to the legal costs of the Group's claim against EDS (an information and technology solutions provider (see note 8b)). 4 Earnings per share 2006/07 2005/06 2005/06 Half year Half year Full year Millions of Millions of Millions shares shares of shares (unaudited) (unaudited) (audited) -------------------------------------------------------------------------------- Weighted average number of shares Ordinary shares 1,765 1,849 1,830 ESOP trust ordinary shares (3) (4) (3) Basic shares 1,762 1,845 1,827 -------------------------------------------------------------------------------- Dilutive ordinary shares from share options 1 2 5 Diluted shares 1,763 1,847 1,832 -------------------------------------------------------------------------------- The calculation of diluted earnings per share excludes 21 million share options (2005/06: half year 34 million; full year 37 million), which could potentially dilute earnings per share in the future. These options do not currently have a dilutive effect as the exercise price of the options exceeds the average market price of ordinary shares during the period. Basic and diluted earnings per share is calculated by dividing profit for the period into the weighted average number of shares for the period. In order to provide a measure of underlying performance, management have chosen to present an adjusted profit for the year which excludes items that may distort comparability. Such items arise from events or transactions that fall within the ordinary activities of the Group but which management believes should be separately identified to help explain underlying performance. 2006/07 2005/06 2005/06 Half year Half year Full year GBP million GBP million GBP million (unaudited) (unaudited) (audited) -------------------------------------------------------------------------------- Reconciliation from profit for the period to adjusted profit for the period Profit for the period 246 274 551 Remeasurement of all derivative financial instruments (not qualifying for hedge accounting) (8) (4) 14 Amount receivable from channel distribution agreement (see note 2) (65) - - Legal costs relating to claim against EDS (see note 3) 6 - - Tax effect of above items 20 1 (4) Adjusted profit for the period 199 271 561 -------------------------------------------------------------------------------- 5 Dividends 2006/07 2005/06 2005/06 Half year Half year Full year GBP million GBP million GBP million (unaudited) (unaudited) (audited) -------------------------------------------------------------------------------- 2005 Final dividend paid: 5.00p per ordinary share - 92 92 2006 Interim dividend paid: 5.50p per ordinary share - - 99 2006 Final dividend paid: 6.70p per ordinary share 117 - - 117 92 191 -------------------------------------------------------------------------------- Dividends proposed after the balance sheet date and not recognised as a liability 2007 Interim dividend proposed: 6.6p per 115 - - ordinary share -------------------------------------------------------------------------------- 6 Reconciliation of movement in shareholders' (deficit) equity Total Share Share ESOP Hedging Available for Other Retained shareholders' capital premium reserve reserve sale reserve reserves earnings (deficit) equity GBP GBP GBP GBP GBP GBP GBP GBP million million million million million million million million ----------------------------------------------------------------------------------------------------------------------------- At 1 July 2005 934 1,437 (32) (14) - 273 (2,411) 187 Purchase of own shares for cancellation (23) - - - - 23 (240) (240) Recognition and transfer of cash flow hedges - - - 1 - - - 1 Tax on items taken directly to equity - - - - - - (2) (2) Share-based payment - - 15 - - - 1 16 Profit for the period - - - - - - 274 274 Dividends - - - - - - (92) (92) At 1 January 2006 911 1,437 (17) (13) - 296 (2,470) 144 ----------------------------------------------------------------------------------------------------------------------------- Purchase of own shares for cancellation (15) - - - - 15 (168) (168) Recognition and transfer of cash flow hedges - - - (55) - - - (55) Tax on items taken directly to equity - - - 16 - - 4 20 Share-based payment - - (8) - - - 10 2 Profit for the period - - - - - - 277 277 Dividends - - - - - - (99) (99) At 1 July 2006 896 1,437 (25) (52) - 311 (2,446) 121 ----------------------------------------------------------------------------------------------------------------------------- Purchase of own shares for cancellation (19) - - - - 19 (214) (214) Recognition and transfer of cash flow hedges - - - 21 - - - 21 Tax on items taken directly to equity - - - (6) - - (1) (7) Revaluation of available for sale investments - - - - (207) - - (207) Share-based payment - - 1 - - - 11 12 Profit for the period - - - - - - 246 246 Dividends - - - - - - (117) (117) At 31 December 2006 877 1,437 (24) (37) (207) 330 (2,521) (145) ----------------------------------------------------------------------------------------------------------------------------- The periods from 1 July to 31 December are unaudited. 7 Notes to the consolidated cash flow statement a) Reconciliation of profit before taxation to cash generated from operations 2006/07 2005/06 2005/06 Half year Half year Full year GBP million GBP million GBP million (unaudited) (unaudited) (audited) -------------------------------------------------------------------------- Profit before tax 356 390 798 Depreciation of property, plant and 58 36 89 equipment Amortisation of intangible assets 33 20 51 Net finance costs 45 31 91 Share of results of joint ventures and (6) (7) (12) associates Increase in trade and other (118) (54) (102) receivables (Increase) decrease in inventories (294) (211) 31 Increase in trade and other payables 289 312 55 Decrease in provisions (3) (7) (13) Decrease in derivative financial instruments 5 4 16 Cash generated from operations 365 514 1,004 -------------------------------------------------------------------------- 8 Other matters a) Contingent liabilities The Group has contingent liabilities by virtue of its investments in joint ventures and associates that are unlimited companies, or partnerships, which include The History Channel (U.K.), Paramount U.K. and NGC-U.K.. The Group's share of contingent liabilities of its joint ventures and associates incurred jointly with the other investors is nil (2005/06: half year nil; full year nil). The Directors do not expect any material loss to arise from the above contingent liabilities. b) Contingent assets The Group has served a claim for a material amount against EDS (an information and technology solutions provider) which provided services to the Group as part of the Group's investment in customer management systems software and infrastructure. The amount which may be recovered by the Group will not be finally determined until resolution of the claim. c) Changes in estimates There have been no material changes in estimates of amounts reported in the six months ended 31 December 2006 or in the year ended 30 June 2006. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BRITISH SKY BROADCASTING GROUP PLC Date: 31 January 2007 By: /s/ Dave Gormley Dave Gormley Company Secretary