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 2009
28 January 2009
 


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 Registration Statements on Form F-3 (SEC File No. 333-08246), Form F-3/S-3 (SEC File No. 333-106837) and Form F-3/S-3 (SEC File No. 333-120775) 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  6K Accounting Release released on  28 January 2009

Consolidated Financial Information

Condensed Consolidated Income Statement 
for the half year ended 31 December 2008



2008/09
2007/08
2007/08


Half year
Half year
Full year

Notes
£ million
£ million
£ million





Revenue
2
2,601
2,458
4,952
Operating expense
3
(2,216)
(2,163)
(4,228)
Operating profit

385
295
724





Share of results of joint ventures and associates

10
8
15
Investment income

28
19
47
Finance costs

(88)
(82)
(177)
Profit on disposal of joint venture
4
-
67
67
Impairment of available-for-sale investment
5
(59)
(343)
(616)
Profit (loss) before tax

276
(36)
60





Taxation

(110)
(76)
(187)
Profit (loss) for the period

166
(112)
(127)





Earnings (loss) per share from profit (loss) for the period (in pence)




Basic 
6
9.5p
(6.4p)
(7.3p)
Diluted 
6
9.5p
(6.4p)
(7.3p)










Condensed Consolidated Statement of Recognised Income and Expense 
for the half year ended 31 December 2008



2008/09
2007/08
2007/08


Half year
Half year
Full year


£ million
£ million
£ million





Profit (loss) for the period

166
       (112)
 (127)





   Net profit (loss) recognised directly in equity




   Loss on available-for-sale investment

-
(192)
(192)
   Gains on cash flow hedges taken to equity

601
11
43
   Tax on cash flow hedges

(168)
(3)
(13)
   Exchange differences on translation of foreign operations

26
-
4


459
(184)
(158)
   Amounts reclassified and reported in the income statement




Cash flow hedges

(406)
(2)
2
Tax on cash flow hedges

113
-
-
Transfer to income statement on impairment of available-for-sale 
investment

-
343
343


(293)
341
345
Net profit recognised directly in equity

166
157
187
Total recognised income and expense for the period 

332
45
60





Condensed Consolidated Income Statement 
for the three months ended 31 December 2008

 






2008/09
Three months
ended 31 December 
£ million

  2007/08
Three months
 ended 31 December 
£ million

 



 


 
Revenue

1,352
1,273
Operating expense

(1,146)
(1,121)
Operating profit

206
152
 



Share of results from joint ventures and associates

6
5
Investment income

9
4
Finance costs

(39)
(42)
Profit on disposal of joint venture

-
67
Impairment of available-for-sale investment

(35)
(343)
Profit (loss) before tax

147
(157)
 



Taxation

(54)
(39)
Profit (loss) for the quarter

93
(196)
 



Earnings per share from profit (loss) for the quarter (in pence)



Basic

5.3
(11.2)
Diluted

5.3
(11.2)








The consolidated income statement for the three months ended 31 December 2008 is not extracted from the Group's Interim Management Report for the period ended 31 December 2008.
 



Condensed Consolidated Balance Sheet
 as at 31 December 2008




31 December
31 December
30 June



2008
2007
2008


Notes
£ million
£ million
£ million






Non-current assets





Goodwill


852
845
852
Intangible assets


325
283
303
Property, plant and equipment


751
682
722
Investments in joint ventures and associates


145
106
114
Available-for-sale-investments 


279
611
338
Deferred tax assets


-
47
23
Trade and other receivables


17
36
19
Derivative financial assets


582
8
13



2,951
2,618
2,384






Current assets





Inventories


630
664
310
Trade and other receivables


705
570
566
Short-term deposits  


165
1
185
Cash and cash equivalents


1,088
389
632
Derivative financial assets


178
5
5



2,766
1,629
1,698






Total assets


5,717
4,247
4,082






Current liabilities





Borrowings


958
98
338
Trade and other payables


1,822
1,627
1,294
Current tax liabilities


203
138
151
Provisions


26
10
27
Derivative financial liabilities


62
21
83



3,071
1,894
1,893






Non-current liabilities





Borrowings


2,553
2,038
2,108
Trade and other payables


62
96
67
Provisions


14
37
22
Derivative financial liabilities


3
240
160
Deferred tax liability


35
-
-



2,667
2,411
2,357






Total liabilities


5,738
4,305
4,250






Shareholders' deficit

8
(21)
(58)
(168)






Total liabilities and shareholders' deficit


5,717


4,247
4,082





Consolidated Cash Flow Statement for the half year ended 31 December 2008




2008/09
2007/08
2007/08



Half year
Half year
Full year


Notes
£ million
£ million
£ million






Cash flows from operating activities





Cash generated from operations

9
588
429
997
Interest received


30
22
43
Taxation paid


(56)
(80)
(163)
Net cash from operating activities


562
371
877






Cash flows from investing activities





Dividends received from joint ventures and associates


11
5
11
Net funding to joint ventures and associates 


(2)
(2)
(6)
Purchase of property, plant and equipment


(126)
(91)
(215)
Purchase of intangible assets


(68)
(62)
(124)
Purchase of available-for-sale investments


-
(7)
(6)
Purchase of subsidiaries (net of cash and cash equivalents purchased)


-
(71)
(72)
Proceeds from the sale of subsidiaries


-
-
3
Decrease (increase) in short-term deposits 


20
14
(170)
Net cash used in investing activities 


(165)
(214)
(579)






Cash flows from financing activities





Proceeds from borrowings


398
54
383
Repayment of borrowings


(32)
(8)
(16)
Repayment of obligations under finance leases


-
-
(1)
Proceeds from disposal of shares in Employee Share Ownership Plan ("ESOP") 


-
16
22
Purchase of own shares for ESOP


(40)
(23)
(45)
Interest paid


(101)
(86)
(165)
Dividends paid to shareholders


(167)
(156)
(280)
Net cash generated from (used in) financing activities


58
(203)
(102)






Effect of foreign exchange rate movements


1
-
1
Net increase (decrease) in cash and cash equivalents


456
(46)
197






Cash and cash equivalents at the beginning of the period


632
435
435






Cash and cash equivalents at the end of the period


1,088
389
632





Notes to the condensed consolidated 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 2008 or 2007, for the purpose of the Companies Act 2006, and is unaudited. Statutory financial statements for the year
ended 30 June 2008 have been filed with the Registrar of Companies. The financial information below for the year ended 30 June 2008 is derived from our audited financial statements. 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") as issued by the International Accounting Standards Board ("IASB") and as adopted by the European Union
 ("EU"), this announcement does not itself contain sufficient information to comply with IFRS. 

2
    Revenue



2008/09
2007/08
2007/08


Half year
Half year
Full year


£ million
£ million
£ million





Retail subscription

1,987
1,853
3,769
Wholesale subscription

93
88
181
Advertising 

165
167
328
Sky Bet 

23
24
44
Installation, hardware and service

142
148
276
Other

191
178
354


2,601
2,458
4,952



3
    Operating expense



2008/09
2007/08
2007/08


Half year
Half year
Full year


£ million
£ million
£ million





Programming 

843
858
1,713
Transmission, technology and networks

339
254
542
Marketing

444
405
743
Subscriber management and supply chain

336
379
700
Administration 

254
267
530


2,216
2,163
4,228



Included within administration for the half year ended 31 December 2008 is £3 million (2008: half year £12 million; 2008: full year £21 million) of expense relating to legal costs incurred on the Group's ongoing claim against EDS (the information and technology
solutions provider (see note 10a)). 

In addition, included within administration for the full year ended 30 June 2008 is £7 million of expense relating to a restructuring exercise undertaken following a review of operating costs. No further costs have been incurred in the half year ended 31 December
2008.

4
    
Profit on disposal of joint venture

The Group made no disposals in the period ended 31 December 2008 and no profit or loss on disposal was realised. In the period ended 31 December 2007, the Group sold its 100% stake in BSkyB Nature Limited. This realised a profit on disposal of £67 million.

5
    Impairment of available-for-sale investment

The Group's investment in ITV is carried at fair value. The fair value of ITV is determined with reference to its equity share price at the balance sheet date. An impairment was first recorded following a review of the carrying value of the investment in ITV at 31
December 2007, due to the significant and prolonged decline in the equity share price. In accordance with IFRS, the Group has continued to review that carrying value throughout fiscal 2008 and fiscal 2009 and during the period has recognised an
impairment loss of £59 million (2008: half year £343 million; full year £616 million). The impairment loss was determined with reference to ITV's closing equity share price of 39 pence at 24 December 2008, the last trading day of the Group's fiscal half year. 

In accordance with IAS 39, the effect of any further decline in the value of the equity share price of ITV will be recognised in the income statement at the relevant future balance sheet date. On 26th January 2009, the closing equity share price of ITV was 30 pence.

6
    Earnings per share




2008/09
2007/08
2007/08



Half year
Half year
Full year



Millions of shares
Millions of shares
Millions of shares
The weighted average number of shares for the period was





Ordinary shares


1,753
1,753
1,753
ESOP trust ordinary shares


(13)
(5)
(5)
Basic shares
 
 
1,740
1,748
1,748






Dilutive ordinary shares from share options
6
-
-
Diluted shares
 
 
1,746
1,748
1,748



The calculation of diluted earnings (loss) per share excludes 23 million share options (2008: half year 33 million; full year 32 million), which could potentially dilute earnings per share in the future. 

Basic and diluted earnings (loss) per share is calculated by dividing loss or profit for the period into the weighted average number of shares for the period. 


2008/09
Half year
pence

2007/08
Half year
pence

2007/08
Full year
pence





Earnings (loss) per share from profit (loss) for the period



Basic
9.5p
(6.4p)
(7.3p)
Diluted
9.5p
(6.4p)
(7.3p)



7
    Dividends


2008/09
Half year
£ million

2007/08
Half year
£ million

2007/08
Full year
£ million





Dividends declared and paid during the period



2007 Final dividend paid: 8.90p per ordinary share
-
156
156
2008 Interim dividend paid: 7.125p per ordinary share
-
-
124
2008 Final dividend paid: 9.625p per ordinary share 
167
-
-

167
156
280



The proposed 2009 interim dividend is 7.5p per ordinary share being £131 million. The dividend was proposed after the balance sheet date and is therefore not recognised as a liability as at 31 December 2008

8
    
Reconciliation of movement in shareholders' deficit 


Share
Share
ESOP
Hedging
Available-for 
Other
Retained 
Total shareholders' 

capital
premium
reserve
reserve
-sale reserve
reserves
earnings
(deficit) equity

£ million
£ million
£ million
£ million
£ million
£ million
£ million
£ million









At 1 July 2007
876
1,437
(54)
(25)
(151)
331
(2,367)
47
Recognition and transfer of cash flow hedges
-
-
-
9
-
-
-
9
Tax on items taken directly to equity
-
-
-
(3)
-
-
(1)
(4)
Revaluation of available-for sale-investment
-
-
-
-
(192)
-
-
(192)
Impairment of available-for-sale investment
-
-
-
-
343
-
-
343
Share-based payment
-
-
25
-
-
-
(18)
7
Loss for the period
-
-
-
-
-
-
(112)
(112)
Dividends
-
-
-
-
-
-
(156)
(156)
At 31 December 2007
876
1,437
(29)
(19)
-
331
(2,654)
(58)
Recognition and transfer of cash flow hedges
-
-
-
36
-
-
-
36
Tax on items taken directly to equity
-
-
-
(10)
-
-
(2)
(12)
Exchange differences on translation of foreign operations 
-
-
-
-
-
4
-
4
Share-based payment
-
-
(8)
-
-
-
9
1
Loss for the period
-
-
-
-
-
-
(15)
(15)
Dividends
-
-
-
-
-
-
(124)
(124)
At 30 June 2008
876
1,437
(37)
7
-
335
(2,786)
(168)
Recognition and transfer of cash flow hedges
-
-
-
195
-
-
-
195
Tax on items taken directly to equity
-
-
-
(55)
-
-
(1)
(56)
Exchange differences on translation of foreign operations
-
-
-
-
-
26
-
26
Share-based payment
-
-
(37)
-
-
-
20
(17)
Profit for the period
-
-
-
-
-
-
166
166
Dividends
-
-
-
-
-
-
(167)
(167)
At 31 December 2008
876
1,437
(74)
147
-
361
(2,768)
(21)



9
    Note to the condensed consolidated cash flow statement

Reconciliation of profit (loss) before taxation to cash generated from operations




2008/09
2007/08
2007/08



Half year
Half year
Full year



£ million
£ million
£ million






Profit (loss) before tax


276
(36)
60
Depreciation of property, plant and equipment


90
77
155
Amortisation of intangible assets


47
43
91
Profit on disposal of joint venture


-
(67)
(67)
Impairment of available-for-sale investments


59
343
616
Share-based payment expense


23
17
36
Net finance costs


60
63
130
Share of results of joint ventures and associates


(10)
(8)
(15)



545
432
1,006
Increase in trade and other receivables


(196)
(95)
(59)
(Increase) decrease in inventories


(320)
(264)
88
Increase (decrease) in trade and other payables


583
349
(30)
(Decrease) increase in provisions


(9)
12
(2)
Increase in derivative financial instruments


(15)
(5)
(6)
Cash generated from operations


588
429
997



 
 
 
10
    Other matters

a)
    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. 

b)
    Contingent liabilities

On 7 May 2008 the Nomenclature Committee of the European Commission issued an Explanatory Note "EN" (0590/2007) to the Combined Nomenclature setting out their view that set-top boxes with a hard drive should be classified under Customs Tariff heading 8521 90 00 and so subject to a 13.9% ad valorem duty on importation to the European Union. As a consequence the Group is exposed to potential retrospective Customs Duty liability in respect of such set-top boxes imported by Amstrad Plc (acquired in September 2007) and for the reimbursement of certain suppliers in line with the terms of contractual supply agreements. 

Management's opinion is that the retrospective application of the Explanatory Note would be wrong as a matter of law. In addition management considers that the adoption of the EN puts the EU in breach of the Information Technology Agreement of 1996, a view which is shared by the 
US
 and 
Japan
 who have instigated WTO proceedings against the EU on this matter. The Group therefore is, in common with other affected importers, defending its position on this matter and consequently has lodged an appeal to the VAT & Duties Tribunal regarding classification of these products. 

As a result of the potential remedies available under the Community Customs Code, the Group considers that in the event that an assessment is made for import duty relating to imports prior to 7 May 2008, it is probable that no outflow of economic benefit would be required to discharge this obligation, and that as such at 31 December 2008 any liability should be considered contingent.


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:  28 January 2009                                                                                                       By: /s/ Dave Gormley
                                                           Dave Gormley
                                                       Company Secretary