British Sky Broadcasting Group PLC · 6-K · For 2/6/08

Filed On 2/6/08, 6:18am ET   ·   Accession Number 1191638-8-190   ·   SEC File 1-13488

Report of a Foreign Private Issuer   —   Form 6-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 6-K         Us Accounting Press Release                           12±    52K 


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 February 2008
 6 February 2008

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 Press Release released on
6 February 2008                                 

BRITISH SKY BROADCASTING GROUP PLC
Results for the half year ended 31 December 2007

Consolidated condensed financial information                                    

Consolidated Income Statement for the half year ended 31 December 2007          

                                                        [Enlarge/Download Table]


---------------------------------------------------------------------------------------------------------
                                                                     2007/08       2006/07      2006/07  
                                                                   Half year     Half year    Full year  
                                                        Notes    GBP million   GBP million  GBP million  
                                                                                                         
---------------------------------------------------------------------------------------------------------

 Revenue                                                  2            2,458        2,220         4,551  
 Operating expense                                        3          (2,163)      (1,825)       (3,736)  
 Operating profit                                                        295          395           815  
---------------------------------------------------------------------------------------------------------

 Share of results of joint ventures and associates                         8            6            12  
 Investment income                                                        19           24            46  
 Finance costs                                                          (82)         (69)         (149)  
 Profit on disposal of joint venture                      4               67            -             -  
 Impairment of available-for-sale investment              5            (343)            -             -  
 (Loss) profit before tax                                               (36)          356           724  
---------------------------------------------------------------------------------------------------------

 Taxation                                                               (76)        (110)         (225)  
 (Loss) profit for the period                                          (112)          246           499  
---------------------------------------------------------------------------------------------------------

 (Loss) earnings per share from (loss) profit for                                                        
 the period (in pence)                                                                                   
 Basic                                                    6           (6.4p)        14.0p         28.4p  
 Diluted                                                  6           (6.4p)        14.0p         28.2p  

---------------------------------------------------------------------------------------------------------

Consolidated  Statement of Recognised Income and Expense for the half year ended
31 December 2007                                                                

                                                        [Enlarge/Download Table]


---------------------------------------------------------------------------------------------------------
                                                                  2007/08        2006/07       2006/07   
                                                                Half year      Half year     Full year   
                                                              GBP million    GBP million   GBP million   
                                                                                                         
---------------------------------------------------------------------------------------------------------

 (Loss) profit for the period                                       (112)            246           499   
---------------------------------------------------------------------------------------------------------

Net movement reported directly in equity                                                                 
Cash flow hedges                                                        9             21            39   
Tax on cash flow hedges                                               (3)            (6)          (12)   
Loss on available-for-sale investments                              (192)          (207)         (151)   
Transfer to profit on impairment of                                                                      
available-for-sale investment                                         343              -             -   
                                                                      157          (192)         (124)   

 Total recognised income and expense for the period                    45             54           375   
---------------------------------------------------------------------------------------------------------

Consolidated Income Statement for the three months ended 31 December 2007       

                                                        [Enlarge/Download Table]

-------------------------------------------------------------------------------------------------------------------  
                                                                                        2007/08             2006/07  
                                                                                   Three months        Three months  
                                                                                       ended 31            ended 31  
                                                                                       December            December  
                                                                                    GBP million         GBP million  
                                                                                                                     
-------------------------------------------------------------------------------------------------------------------  

Revenue                                                                                   1,273               1,149  
Operating expense                                                                       (1,121)               (934)  

 ------------------------------------------------------------------------------------------------------------------  
|EBITDA                                                                                     214                 262 |
|Depreciation and amortisation                                                             (62)                (47) |
 ------------------------------------------------------------------------------------------------------------------  
Operating profit                                                                            152                 215  
-------------------------------------------------------------------------------------------------------------------  

Share of results from joint ventures and associates                                           5                   4  
Investment income                                                                             4                  10  
Finance costs                                                                              (42)                (39)  
Profit on disposal of joint venture                                                          67                   -  
Impairment of available-for-sale investment                                               (343)                   -  
(Loss) profit before tax                                                                  (157)                 190  
-------------------------------------------------------------------------------------------------------------------  

Taxation                                                                                   (39)                (60)  
(Loss) profit for the quarter                                                             (196)                 130  
-------------------------------------------------------------------------------------------------------------------  

Earnings per share from (loss) profit for the                                                                        
quarter (in pence)                                                                                                   
Basic and diluted                                                                        (11.2)                 7.4  

The consolidated income statement for the three months ended 31 December 2007 is
not extracted from the Group's Interim Management Report for the period ended 31
December 2007.                                                                  

Consolidated Balance Sheet as at 31 December 2007                               

                                                        [Enlarge/Download Table]


-------------------------------------------------------------------------------------------------------------------
                                                               31 December        31 December            30 June   
                                                                      2007               2006               2007   
                                                    Notes      GBP million        GBP million        GBP million   
                                                                                                                   
-------------------------------------------------------------------------------------------------------------------

Non-current assets                                                                                                 
Goodwill                                                               845                659                741   
Intangible assets                                                      283                209                261   
Property, plant and equipment                                          682                593                670   
Investments in joint ventures and associates                           106                 31                 34   
Available-for-sale-investments                                         611                771                797   
Deferred tax assets                                                     47                 79                 54   
Trade and other receivables                                             36                  -                  -   
Derivative financial assets                                              8                  -                  -   
                                                                     2,618              2,342              2,557   
-------------------------------------------------------------------------------------------------------------------

Current assets                                                                                                     
Inventories                                                            664                609                384   
Trade and other receivables                                            570                568                524   
Short-term deposits                                                      1                202                 15   
Cash and cash equivalents                                              389                402                435   
Derivative financial assets                                              5                  6                  5   
                                                                     1,629              1,787              1,363   
-------------------------------------------------------------------------------------------------------------------

Total assets                                                         4,247              4,129              3,920   
-------------------------------------------------------------------------------------------------------------------

Current liabilities                                                                                                
Borrowings                                                              98                548                 16   
Trade and other payables                                             1,627              1,469              1,295   
Current tax liabilities                                                138                140                144   
Provisions                                                              10                  4                  8   
Derivative financial liabilities                                        21                 36                 36   
                                                                     1,894              2,197              1,499   
-------------------------------------------------------------------------------------------------------------------

Non-current liabilities                                                                                            
Borrowings                                                           2,038              1,751              2,014   
Trade and other payables                                                96                 63                 84   
Provisions                                                              37                 18                 18   
Derivative financial liabilities                                       240                245                258   
                                                                     2,411              2,077              2,374   
-------------------------------------------------------------------------------------------------------------------

Total liabilities                                                    4,305              4,274              3,873   
-------------------------------------------------------------------------------------------------------------------

Shareholders' (deficit) equity                        8               (58)              (145)                 47   
-------------------------------------------------------------------------------------------------------------------

Total liabilities and shareholders' (deficit)                                           4,129                      
equity                                                               4,247                                 3,920   
-------------------------------------------------------------------------------------------------------------------

Consolidated Cash Flow Statement for the half year ended 31 December 2007       

                                                        [Enlarge/Download Table]

----------------------------------------------------------------------------------------------------------------------
                                                                         2007/08           2006/07           2006/07  
                                                                       Half year         Half year         Full year  
                                                           Notes     GBP million       GBP million       GBP million  
                                                                                                                      
----------------------------------------------------------------------------------------------------------------------

Cash flows from operating activities                                                                                  
Cash generated from operations                               9               429               365             1,007  
Interest received                                                             22                32                46  
Taxation paid                                                               (80)              (39)             (128)  
Net cash from operating activities                                           371               358               925  
----------------------------------------------------------------------------------------------------------------------

Cash flows from investing activities                                                                                  
Dividends received from joint ventures and associates                          5                 4                 9  
Net funding to joint ventures and associates                                 (2)                 -               (3)  
Purchase of property, plant and equipment                                   (91)             (131)             (292)  
Purchase of intangible assets                                               (62)              (27)              (64)  
Purchase of available-for-sale investments                                   (7)             (975)             (947)  
Purchase of subsidiaries (net of cash and cash                                                                        
equivalents purchased)                                                      (71)              (19)             (104)  
Decrease in short-term deposits                                               14               445               632  
Net cash used in investing activities                                      (214)             (703)             (769)  
----------------------------------------------------------------------------------------------------------------------

Cash flows from financing activities                                                                                  
Proceeds from borrowings                                                      54               550              295   
Repayment of borrowings                                                      (8)             (191)            (192)   
Proceeds from disposal of shares in Employee Share                                                                    
Ownership Plan ("ESOP")                                                       16                 8               37   
Purchase of own shares for ESOP                                             (23)              (13)             (76)   
Purchase of own shares for cancellation                                        -             (214)            (214)   
Interest paid                                                               (86)              (92)            (154)   
Dividends paid to shareholders                                             (156)             (117)            (233)   
Net cash used in financing activities                                      (203)              (69)            (537)   
----------------------------------------------------------------------------------------------------------------------

Net decrease in cash and cash equivalents                                   (46)             (414)            (381)   
----------------------------------------------------------------------------------------------------------------------

Cash and cash equivalents at the beginning of the period                     435               816              816   

Cash and cash equivalents at the end of the period                           389               402              435   
----------------------------------------------------------------------------------------------------------------------

Notes to the 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 year ended 31 December 2007, for the
purpose  of  the  Companies  Act  1985,  but is  extracted  from  the  condensed
consolidated  interim  financial  statements  prepared in accordance with IAS 34
'Interim  Financial  Reporting' ("IAS 34") as presented in the unaudited Interim
Management  Report  dated 31 December  2007.  Copies of the  Interim  Management
Report  are   available   from  the  British  Sky   Broadcasting   web  page  at
www.sky.com/corporate. The financial information for the full year ended 30 June
2007 is extracted from the statutory financial  statements for that year. A copy
of the statutory accounts has been delivered to 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 the  recognition  and  measurement  principles  of
International Financial Reporting Standards ("IFRS"), this announcement does not
itself contain sufficient information to comply with IFRS.                      

The Group  maintains a 52 or 53 week fiscal year ending on the Sunday nearest to
30 June in each year. In fiscal year 2008,  this date will be 29 June 2008, this
being a 52 week year (fiscal year 2007: 1 July 2007,  52 week year).  Similarly,
the condensed  consolidated interim financial statements are based on the Sunday
nearest to 31  December  in each  year.  In fiscal  year 2008,  this date was 30
December 2007 (fiscal year 2007: 31 December 2006) For convenience purposes, the
Group continues to date its consolidated financial statements as at 30 June, and
its condensed consolidated interim financial statements as at 31 December.      

2    Revenue                                                                    

                                                        [Enlarge/Download Table]

-------------------------------------------------------------------------------------------------------------------
                                                                            2007/08       2006/07         2006/07  
                                                                          Half year     Half year       Full year  
                                                                        GBP million   GBP million     GBP million  
-------------------------------------------------------------------------------------------------------------------
                                                                                                                   
Retail subscription                                                           1,853         1,638           3,406  
Wholesale subscription                                                           88           109             208  
Advertising                                                                     167           171             352  
Sky Bet                                                                          24            20              47  
Installation, hardware and service                                              148           119             212  
Other                                                                           178           163             326  
                                                                              2,458         2,220           4,551  
-------------------------------------------------------------------------------------------------------------------

3     Operating expense                                                         

                                                        [Enlarge/Download Table]

-------------------------------------------------------------------------------------------------------------------
                                                                            2007/08       2006/07         2006/07  
                                                                          Half year     Half year       Full year  
                                                                        GBP million   GBP million     GBP million  
-------------------------------------------------------------------------------------------------------------------
                                                                                                                   
Programming                                                                     858           748           1,539  
Transmission and related functions                                              254           181             402  
Marketing                                                                       405           375             734  
Subscriber management                                                           379           313             618  
Administration                                                                  267           208             443  
                                                                              2,163         1,825           3,736  
-------------------------------------------------------------------------------------------------------------------

Included  within  programming for the full year ended 30 June 2007 and 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 2007 is GBP12
million  (2007:  half year GBP6  million;  full year GBP16  million)  of expense
relating to legal costs  incurred on the Group's  ongoing claim against EDS (the
information and technology solutions provider (see note 10b)).                  

4      Profit on disposal of joint venture                                      

On 12 December 2007, the Group sold its 100% stake in BSkyB Nature Limited,  the
investment   holding  company  for  the  Group's  50%  interest  in  the  NGC-UK
Partnership. As consideration for the disposal, the Group received 21% interests
in both NGC  Network  International  LLC and NGC Network  Latin  America LLC (in
effect, 21% of National Geographic  Channel's  television  operations outside of
the US). This realised a profit on disposal of GBP67 million.                   

5      Impairment of available-for-sale investment                              

The  impairment  of   available-for-sale   investment  relates  to  the  Group's
investment in ITV plc ("ITV").  As required by IAS 39, following a review of the
carrying  value of the  investment  in ITV at 31  December  2007,  the Group has
recognised  an  impairment  loss of GBP343  million in the current  period.  The
impairment  loss was  determined  with  reference to ITV's closing  equity share
price of GBP0.87 at 28 December 2007, the last trading day of the Group's fiscal
half year, and is attributable  to the significant and prolonged  decline in the
ITV equity share price.                                                         

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 4 February 2008, the equity share price
of ITV was GBP0.79.                                                             

6    Earnings per share                                                         

                                                        [Enlarge/Download Table]

--------------------------------------------------------------------------------------------------------------------
                                                                            2007/08         2006/07        2006/07  
                                                                          Half year       Half year      Full year  
                                                                        Millions of     Millions of    Millions of  
                                                                             shares          shares         shares  
--------------------------------------------------------------------------------------------------------------------
                                                                                                                    
The  weighted  average  number  of  shares  for the                                                                 
period was                                                                                                          
Ordinary shares                                                               1,753           1,765          1,759  
ESOP trust ordinary shares                                                      (5)             (3)            (4)  
Basic shares                                                                  1,748           1,762          1,755  
--------------------------------------------------------------------------------------------------------------------

Dilutive ordinary shares from share options                                       -               1             12  
Diluted shares                                                                1,748           1,763          1,767  
--------------------------------------------------------------------------------------------------------------------

The  calculation of diluted (loss)  earnings per share excludes 22 million share
options  (2007:  half  year 21  million;  full  year 17  million),  which  could
potentially dilute earnings per share in the future.                            

Basic and diluted  (loss)  earnings per share is  calculated by dividing loss or
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  believe  should  be
separately identified to help explain underlying performance.                   

                                                        [Enlarge/Download Table]

--------------------------------------------------------------------------------------------------------------------
                                                                            2007/08        2006/07          2006/07 
                                                                          Half year      Half year        Full year 
                                                                        GBP million    GBP million      GBP million 
                                                                                                                    
Reconciliation from (loss) profit for the period to adjusted profit                                                 
for the period                                                                                                      
(Loss) profit for the period                                                  (112)            246              499 
Remeasurement of all derivative financial instruments (not qualifying                                               
for hedge accounting)                                                           (4)            (8)              (6) 
Amount receivable from channel distribution agreement (see note 3)                -           (65)             (65) 
Legal costs relating to claim against EDS (see note 3)                           12              6               16 
Profit on disposal of joint venture                                            (67)              -                - 
Impairment of available-for-sale investment                                     343              -                - 
Tax effect of above items                                                       (2)             20               17 
Adjusted profit for the period                                                  170            199              461 
--------------------------------------------------------------------------------------------------------------------

7    Dividends                                                                  

                                                        [Enlarge/Download Table]

--------------------------------------------------------------------------------------------------------------------
                                                                            2007/08        2006/07          2006/07 
                                                                          Half year      Half year        Full year 
                                                                        GBP million    GBP million      GBP million 
                                                                                                                    
--------------------------------------------------------------------------------------------------------------------
Dividends declared and paid during the period                                                                       
2006 Final dividend paid: 6.70p per ordinary share                                -            117              117 
2007 Interim dividend paid: 6.60p per ordinary share                              -              -              116 
2007 Final dividend paid: 8.90p per ordinary share                              156              -                - 
                                                                                156            117              233 
--------------------------------------------------------------------------------------------------------------------

The 2008 interim  dividend is 7.1p per ordinary share being GBP125 million.  The
dividend  was  proposed  after  the  balance  sheet  date and is  therefore  not
recognised as a liability as at 31 December 2007.                               

8    Reconciliation of movement in shareholders' (deficit) equity               

                                                        [Enlarge/Download Table]

-------------------------------------------------------------------------------------------------------------------- 
                                     Share    Share       ESOP  Hedging Available-     Other Retained          Total 
                                                                               for                     shareholders' 
                                                                             -sale                         (deficit) 
                                   capital  premium    reserve  reserve    reserve  reserves earnings         equity 
                                       GBP      GBP        GBP      GBP        GBP       GBP      GBP            GBP 
                                  Gmillion  million    million  million    million   million  million        million 
-------------------------------------------------------------------------------------------------------------------- 
                                                                                                                     
At 1 July 2006                         896    1,437       (25)     (52)          -       311  (2,446)            121 
Purchase of own shares for                                                                                           
cancellation                          (20)        -          -        -          -        20    (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-investment                          -        -          -        -      (207)         -        -          (207) 
Share-based payment                      -        -          1        -          -         -       11             12 
Profit for the period                    -        -          -        -          -         -      246            246 
Dividends                                -        -          -        -          -         -    (117)          (117) 
At 31 December 2006                    876    1,437       (24)     (37)      (207)       331  (2,521)          (145) 
-------------------------------------------------------------------------------------------------------------------- 
Recognition and transfer of cash         -        -          -       18          -         -        -             18 
flow hedges                                                                                                          
Tax on items taken directly to                                                                                       
equity                                   -        -          -      (6)          -         -        6              - 
Revaluation of available-for-sale                                                                                    
investment                               -        -          -        -         56         -        -             56 
Share-based payment                      -        -       (30)        -          -         -       11           (19) 
Profit for the period                    -        -          -        -          -         -      253            253 
Dividends                                -        -          -        -          -         -    (116)          (116) 
At 30 June 2007                        876    1,437       (54)     (25)      (151)       331  (2,367)             47 
-------------------------------------------------------------------------------------------------------------------- 
Recognition and transfer of cash        -         -          -        9          -         -        -              9 
flow hedges                                                                                                          
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) 
-------------------------------------------------------------------------------------------------------------------- 

9    Notes to the consolidated cash flow statement                              

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

                                                        [Enlarge/Download Table]

----------------------------------------------------------------------------------------------------------------
                                                                        2007/08        2006/07        2006/07   
                                                                      Half year      Half year      Full year   
                                                                    GBP million    GBP million    GBP million   
----------------------------------------------------------------------------------------------------------------
                                                                                                                
(Loss) profit before tax                                                   (36)            356            724   
Depreciation of property, plant and equipment                                77             58            120   
Amortisation of intangible assets                                            43             33             72   
Profit on disposal of joint venture                                        (67)              -              -   
Impairment of available-for-sale investments                                343              -              -   
Net finance costs                                                            63             45            103   
Share of results of joint ventures and associates                           (8)            (6)           (12)   
                                                                            415            486          1,007   
----------------------------------------------------------------------------------------------------------------
Increase in trade and other receivables                                    (95)          (118)           (47)   
Increase in inventories                                                   (264)          (294)           (59)   
Increase in trade and other payables                                        366            289            101   
Increase (decrease) in provisions                                            12            (3)              1   
(Increase) decrease in derivative financial instruments                     (5)              5              4   
Cash generated from operations                                              429            365          1,007   
----------------------------------------------------------------------------------------------------------------

10   Other matters                                                              

a)   Contingent liabilities                                                     

In April 2007,  Virgin Media  Communications  Limited,  Virgin Media  Television
Limited and Virgin Media Limited issued proceedings in the High Court in England
and  Wales  against  British  Sky   Broadcasting   Group  plc  and  British  Sky
Broadcasting  Limited,  alleging that the Group has infringed  Article 82 EC and
the Chapter II prohibition by pursuing an  anticompetitive  strategy designed to
weaken Virgin Media group, which allegedly entailed:  (i) a constructive refusal
to supply the Group's  basic pay  television  channels to Virgin Media group for
supply via Virgin Media  group's  cable network in the UK; (ii) a refusal to pay
fair prices for the right to carry Virgin Media group's  television  channels as
part of the Group's retail channel offering; and (iii) the Group's purchase of a
significant  shareholding  in ITV (which  purchase was, it is alleged,  designed
principally  to damage Virgin Media group's  ability to compete in the supply of
pay television services,  by preventing Virgin Media group from obtaining access
to attractive  programming  content).  Virgin Media group seeks from the Court a
declaration  that the Group occupies a dominant market position in specified pay
TV  retail  and  purchasing  markets  in the UK and that the Group  has,  by its
conduct as alleged,  abused its dominant  position(s)  contrary to Article 82 EC
and the Chapter II  prohibition on these  relevant  markets.  Virgin Media group
also seeks  mandatory  injunctions  requiring  the Group to transact with Virgin
Media  group on fair  and/or  non-discriminatory  terms  for the  supply  of the
Group's basic pay  television  channels to Virgin Media and for the licensing of
Virgin  Media  group's  television  channels,   for  on-supply  to  the  Group's
subscribers.  Virgin  Media group also seeks  damages to  compensate  it for its
alleged losses arising from the Group's alleged conduct.                        

The Group intends to defend the proceedings vigorously and submitted its defence
to the High Court on 2 July 2007 denying Virgin Media group's  allegations  that
it had infringed Article 82 EC or Chapter II prohibition. A start date for trial
has been provisionally set for February 2009. It is, at this stage, too early to
estimate the likely outcome of the proceedings.                                 

b)   Contingent assets                                                          

The Group has served a claim,  which is currently  being heard in the High Court
of Justice,  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.                                                        

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: 6 February 2008                    By: /s/ Dave Gormley                   
                      Dave Gormley
                           Company Secretary