British Sky Broadcasting Group PLC – ‘6-K’ for 2/6/08

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

Document/Exhibit                   Description                      Pages   Size 

 1: 6-K         Interim Results                                       26±   106K 


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                                  

EXHIBIT INDEX 

Exhibit 

EXHIBIT NO. 1   Press release of British Sky Broadcasting Group plc             
      announcing Interim Results released on 6 February 2008

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

 High Quality Growth

Operational Performance: Record product sales, increased loyalty                

*    Net customer growth in the quarter of 167,000 to 8.832 million             

-  New customer additions of 385,000                                  

-  Churn reduced to 10.0%                                             

-  Record ARPU of GBP421                                              

*    Record total product sales of over 1.6 million, up 28% from the previous   
quarter                                                               

-  Record Sky+ growth of 434,000 to 3.131 million, up 16%             

-  HD growth of 64,000 to 422,000, up 18%                             

-  Multiroom growth of 120,000 to 1.531 million, up 9%                

-  Sky Broadband growth of 260,000 to 1.199 million, up 28%           

-  Record Sky Talk growth of 236,000 to 915,000, up 35%               

Financial Performance: Strong top-line growth for the half year                 

*    Group revenue increased by 11% on the comparable period(1) to              
GBP2,458 million                                                      

*    Gross margin increased by two percentage points on the comparable period to
65%(2) (excluding exceptional item)                                   

*    Operating  profit of GBP295  million  included  GBP91  million of          
investment  in Sky  Broadband  and Sky Talk,  GBP12 million           
investment in Easynet Enterprise and an exceptional charge of         
GBP12 million(3)                                                      

*    Adjusted operating profit of GBP307 million(3) (excluding exceptional item)
reflected strong operating metrics                                    

*    Basic loss per share of 6.4 pence includes net  exceptional  items of      
GBP282  million(4);  adjusted  earnings per share of 9.7              
pence (2007: 11.3 pence)                                              

*    Interim dividend increased by 8% to 7.1 pence per share                    

(1) Six months ended 31 December 2006                                           
(2) Gross margin in the six months to 31 December 2006  excludes an  exceptional
receipt of GBP65  million from a third party  channel  provider,  accounted  for
within programming costs                                                        
(3) Adjusted  operating profit for the six months to 31 December 2007,  excludes
an exceptional non operating item of GBP12 million relating to EDS legal costs  
(4) Net exceptional  items include GBP12 million relating to EDS legal costs, an
impairment of GBP343 million relating to the Group's  investment in ITV, a GBP67
million gain relating to an exchange transaction for National  Geographic,  GBP4
million relating to mark-to-market in derivative  financial  instruments that do
not qualify for hedge accounting and related tax adjustments of GBP2 million    

Jeremy Darroch, Chief Executive said:                                           

"We have made good progress  during the quarter.  Our focus on value and quality
has  delivered  a strong  level of new  customer  additions,  a 35% year on year
increase in product sales,  record ARPU, and lower churn. Our business continues
to strengthen."                                                                 

"We enter calendar year 2008 in good shape. A combination of outstanding choice,
quality and value leadership  leaves us well  positioned.  An 8% increase in our
interim dividend reflects our confidence."                                      

Enquiries:                                                                      

Analysts/Investors:                                                             

Robert Kingston                             Tel:     020 7705 3726              
Francesca Pierce                            Tel:     020 7705 3337              

E-mail: investor-relations@bskyb.com                                            

Press:                                                                          

Matthew Anderson                            Tel:     020 7705 3267              
Robert Fraser                               Tel:     020 7705 3036              

E-mail: corporate.communications@bskyb.com                                      

There will be a presentation to analysts and investors at 09:30 a.m. (GMT) today
at The Commonwealth Club, 25,  Northumberland  Avenue,  London, WC2N 5AP. A live
webcast of this presentation will be available today on Sky's corporate website,
which can be found at www.sky.com/corporate.                                    

A conference call for US analysts and investors will be held at 10:00 a.m. (EST)
today.  Details of this call have been sent to North American  institutions  and
can be obtained from Dana Johnston at Taylor Rafferty on +1 212 889 4350. A live
webcast of this call will be available today on Sky's corporate  website,  which
can be found at www.sky.com/corporate.                                          

An interview with Jeremy  Darroch,  CEO in audio / video and transcript  will be
available from 7:00 a.m. GMT today at www.sky.com/corporate and www.cantos.com. 

Results highlights                                                              

All  financial  results  have been  prepared in  accordance  with  International
Financial Reporting Standards ("IFRS"), including comparatives.                 

Customer Metrics                                                                

                                                        [Enlarge/Download Table]

'000s                                            31-Dec-07               30-Sep-07           Net additions 
                                                                                                           
--------------------------------------- ------------------- ----------------------- -----------------------

Total customers(1)(2)(3)                             8,832                   8,665                     167 
Additional products:                                                                                       
Sky+(4)                                              3,131                   2,697                     434 
Multiroom(5)                                         1,531                   1,411                     120 
HD                                                     422                     358                      64 
Broadband                                            1,199                     939                     260 
Telephony                                              915                     679                     236 
Other KPIs:                                                                                                
Churn for the quarter (annualised)                   10.0%                   11.3%                     n/a 
ARPU                                                GBP421                  GBP411                     n/a 
======================================= =================== ======================= =======================

(1)  Includes DTH  customers in Republic of Ireland.  (535,000 as at 31 December
2007; 513,000 as at 30 September 2007.)                                         
(2) DTH customers include only primary  subscriptions to Sky (no additional Sky+
or Multiroom subscriptions are counted). This does not include Freesat customers
who do not subscribe to an additional Sky service or churned  customers  viewing
free-to-air channels                                                            
(3) DTH customers  include customers taking Sky packages via DSL through Tiscali
TV                                                                              
(4) Sky+ includes HD households                                                 
(5) Multiroom  includes  households  subscribing  to more than one digibox.  (No
additional  units  are  counted  for  the  second  or any  subsequent  Multiroom
subscriptions within one household.)                                            

Financial Summary (unaudited)                                                   

                                                        [Enlarge/Download Table]


GBP'millions                            6 months to Dec-07      6 months to Dec-06              % movement 
                                                                                                           
----------------------------------- ----------------------- ----------------------- -----------------------

Income statement:                                                                                          
Revenue(6)                                           2,458                   2,220                    +11% 
Gross profit                                         1,600                   1,472                     +9% 
% Margin                                               65%                     66%                       - 
Operating profit(7)                                    295                     395                    -25% 
% Margin                                               12%                     18%                     -6% 
Exceptional operating  items((8))                     (12)                      59                       - 
Adjusted operating profit                              307                     336                     -9% 
Impairment of available-for-                         (343)                       -                       - 
sale investment                                                                                            
(Loss) profit for the period                         (112)                     246                       - 
Cash flow information:                                                                                     
EBITDA                                                 415                     486                    -15% 
Cash generated from operations                         429                     365                    +18% 
Net debt((9))                                      (1,973)                 (1,940)                     +2% 
=================================== ======================= ======================= =======================

Per share information (pence):           6 months to Dec-07      6 months to Dec-06              % movement
----------------------------------- ----------------------- ----------------------- -----------------------

Loss per share - basic                               (6.4)                    14.0                       - 
EPS - adjusted(10)                                     9.7                    11.3                    -14% 
=================================== ======================= ======================= =======================

(6) Revenue for the six months to 31 December 2007 ("the half"), includes GBP107
million  from  Sky  Broadband  and Sky  Talk  and  GBP84  million  from  Easynet
Enterprise                                                                      
(7) Operating profit for the half includes net operating losses of GBP91 million
from Sky Broadband and Sky Talk and GBP12 million from Easynet  Enterprise and a
GBP12 million exceptional charge                                                
(8) Exceptional  operating items include amounts  relating to EDS legal costs in
both  2008 and 2007 and a  one-off  gain of  GBP65  million  from a third  party
channel provider in 2007                                                        
(9)  Cash,   cash-equivalents,   short-term  deposits,  net  of  borrowings  and
borrowings related financial instruments                                        
(10) Adjusted EPS for the half excludes GBP12 million  litigation  fees relating
to EDS, an impairment of GBP343  million  relating to the Group's  investment in
ITV, a GBP67  million  gain  relating to an exchange  transaction  for  National
Geographic,  GBP4 million  relating to  mark-to-market  of derivative  financial
instruments that do not qualify for hedge accounting and related tax adjustments
of GBP2 million                                                                 

OVERVIEW                                                                        

Our  transformation  into a multi-product  business  continues apace.  Despite a
challenging  backdrop,  we continued  to grow from  strength to strength in line
with our targets, assisted by the increased breadth of our product offering.    

Total product sales  increased  strongly year on year and we have maintained the
rapid growth of our broadband and  telephony  businesses.  Our focus on customer
quality  continues,  and our  decision  to reduce the level of  viewing  package
discounts in acquisition and retention led to a three-fold increase year on year
in new customers paying a full price subscription,  as well as improved customer
loyalty.  This  initiative,  together with an increase in TV pricing and growing
new product penetration, delivered record ARPU and the lowest level of churn for
three years.                                                                    

Key  operational  highlights  for the three  months to 31  December  2007  ("the
quarter") were:                                                                 

o    Net new customer growth of 167,000                                         
o    Gross additions of 385,000 with churn at a three-year low of 10.0%         
o    Record ARPU at GBP421, year on year growth of 7%                           
o    Product sales in the quarter of 1.6 million, year on year growth of 35%    
o    Record Sky+ growth of 434,000,  with 3.1 million  households  or 35% of our
customer base taking the product                                      
o    An additional  260,000  broadband and 236,000 talk customers,  establishing
Sky as the fastest growing broadband and telephony provider           
o    47% of customers now take an additional  product, up from around 30% in the
prior year.                                                           

As previously announced,  and in accordance with IAS 39 "Financial  Instruments:
Recognition  and  Measurement"  ("IAS 39"),  the results  reflect an  impairment
charge  of  GBP343  million  relating  to the  Group's  investment  in ITV.  The
impairment  charge has been treated as an  exceptional  item and was  determined
with reference to ITV's equity share price at the 28 December 2007.             

Our  financial  performance  for the six months to 31 December 2007 saw reported
operating profit reduce to GBP295 million reflecting investment in future growth
and the impact of the new Barclays  Premier  League  contract,  loss of carriage
fees and  related  advertising  revenue as a result of the  non-carriage  of our
basic channels on cable.  Revenue increased by 11% to GBP2,458 million with good
growth in  customers  and ARPU.  Operating  profit of GBP295  million was stated
after  GBP103  million of  investment  in Sky  Broadband,  Sky Talk and  Easynet
Enterprise, as well as exceptional legal costs of GBP12 million. Excluding these
items,  operating  profit was GBP410 million.  Customer demand for Sky+ remained
strong,  which will  generate  important  future  benefits  including  increased
customer  loyalty.  While strong Sky+ growth incurs a short term cost,  this was
partially offset by supply chain efficiencies arising as a result of the Amstrad
acquisition.                                                                    

OUTLOOK                                                                         

Looking forward to the second half of the financial year, we are well positioned
to grow. We are confident in the quality and value of our products at all levels
and continue to focus on delivering  high quality  customer  growth in line with
our 2010  goal,  whilst  increasing  the number of  products  and  services  our
existing customers choose.                                                      

Financially,  we anticipate that the operating  profit  performance for the full
year will be in line with our expectations.  Looking to 2009, we expect that the
peak of investment in broadband will be behind us;  baseline profit will already
include both higher sports costs for the new Barclays  Premier League  contract,
which is fixed for a further two years,  and lower revenue from any continuation
of non-carriage of our basic channels on cable.                                 

OPERATIONAL REVIEW                                                              

New DTH customer  additions  were  385,000 for the  quarter.  In contrast to the
second quarter of 2007,  these sales were achieved with a significant  reduction
in the use of  short-term  viewing  package  discounts  and  included a standard
installation  fee across all  products.  We  continued  to focus on full  priced
viewing  package  sales using the genuine  quality and value  leadership  of our
products to drive  growth.  This  approach is creating a strong and  sustainable
business for the long-term.                                                     

Total product sales continue to grow strongly, increasing by 28% on the previous
quarter to around 1.6 million.  During the quarter, 19% of HD additions,  40% of
Sky+  additions,  and  44%  of  broadband  additions  were  new  Sky  customers,
reflecting the highest ever uptake of Sky+ and broadband amongst new customers. 

DTH churn for the quarter (annualised) reached 10.0%, its lowest level for three
years,  representing a 1.3 percentage point reduction from the previous quarter.
This was driven by the reduction in viewing  package  discounts and our focus on
high quality  customer  acquisitions,  as well as growth in  additional  product
penetration and continual improvements to the customer experience.              

ARPU  increased by 7% year on year and 2% quarter on quarter to a record GBP421.
This reflects a full quarter's benefit of the 2007 price increase,  contribution
from  increased  penetration  of  additional  products  and the benefit from the
phasing out of viewing package discounts in customer acquisition and retention. 

Sky+  households  exceeded  three million with a record 434,000 net additions in
the quarter to reach 35% penetration of the base, up four  percentage  points on
the previous quarter.  Multiroom  households grew by 120,000 in the quarter, now
17% of the  base;  and Sky HD also  showed  good  growth,  increasing  by 18% to
422,000, 5% of the base.  Recognition for Sky HD was received during the quarter
at the Royal  Television  Society  Innovation  Awards  2007.  Sky  obtained  the
'Raising  The Bar  Award' for  introducing  a  technology  which set a new 'gold
standard' of expectations.                                                      

Sky Broadband,  the UK's fastest  growing  broadband  provider,  added a further
260,000  subscribers  during the  quarter to reach 1.2 million  customers,  with
around two-thirds of on-net customers choosing a paid-for product. At the end of
the quarter the Group also had an additional  29,000  business and  professional
broadband  customers  registered to its UK Online  branded  service.  During the
quarter,  Sky  Broadband  received  recognition  for its  service at the uSwitch
"Broadband Satisfaction Awards", being voted winner in the following categories:
"Supplier most likely to be  recommended",  "Best value for Money" and "Ensuring
Customers  are on the best deal".  In addition,  the JD Power "2007 UK Broadband
Internet Service Provider  Satisfaction Study" quoted Sky as one of the industry
leaders  in  terms  of  overall  satisfaction,  performing  significantly  above
industry average in terms of value and choice. Notably, Sky ranked as the number
one choice for customers  interested in obtaining  their telecoms  services from
one provider.                                                                   

Sky Talk had a record  quarter  of growth  with net  additions  of  236,000,  an
increase of 54% on the  previous  quarter's  additions,  with 97% of the closing
telephony  base taking  either the  Freetime  or  Unlimited  packages.  As at 31
December 2007, 54% of broadband customers also took Sky Talk. Despite such rapid
growth,  less  than 10% of our  total  customer  base now takes all three of TV,
broadband and telephony, providing a significant opportunity for future growth. 

During the quarter we continued to build on our extensive content offering, with
the renewal of two key sports rights contracts.  Live rights were secured to the
Rugby  League for a three year period from 2009,  providing  Sky Sports  viewers
with over 100 matches a year, including exclusive live coverage of Super League.
We also secured rights to the Football League  competitions for three years from
August 2009,  including at least 95 matches a season and continued live coverage
of The Coca Cola  Championship and Carling Cup matches.  Strong audience figures
were achieved  during the quarter and  exclusive Sky Box Office  coverage of the
Hatton vs.  Mayweather  WBC  Welterweight  fight,  attracted a record  number of
pay-per-view buys for a sporting event.                                         

Sky One also had a strong  quarter,  both through content  acquisitions  and our
commissioned  programming.  During  the  quarter,  four out of the top ten rated
programmes  on Sky One were  internally  commissioned,  with  "Noel's  Christmas
Presents"  achieving  record  audiences  on  our  entertainment   channels  this
financial year.                                                                 

Sky Anytime on PC and Sky.com  were both  re-launched  during the  quarter.  The
enhanced Sky Anytime on PC service is the first online download service to offer
Sky Movies customers the latest films from all six major Hollywood  studios.  In
addition to a wide selection of films,  sport,  entertainment  and  pay-per-view
movies,  the service also re-launched  with content from additional  third-party
channels such as National  Geographic  and The History  Channel,  as well as the
recently  launched  Sky Real  Lives.  Sky.com  now  showcases  a variety of rich
content,  allowing users to browse entertainment,  news and sports in one place,
as well as  offering a gateway  into newly  launched  Sky  websites  such as Sky
Motoring and Sky Property.                                                      

Sky's first zero  emission van began its trial in the quarter,  complementing  a
shift to  bio-diesel  in part of the van fleet,  and a shift to hybrid  cars for
team managers.  Sky's autostandby  technology that powers down Sky set top boxes
automatically  is now in 3.8 million boxes,  saving customers money and reducing
carbon emissions. Carbon savings from this change now nearly match the company's
operational footprint, prior to emissions offsetting.                           

External recognition of our environmental  contribution  increased this quarter,
with Sky receiving the "Community and Environmental  Responsibility"  award from
Management  Today.  In addition,  the company  secured a Green Fleet Hero Award,
plus a Green Award for  Sustainable  Business  (presented by the United  Nations
Environment Programme).                                                         

Sky continues to respond to its customers'  recognition of the educational value
of  broadband  and  television   through  the  extension  of  our  Sky  Learning
proposition  to bring  learning to life for customers of all ages.  Its services
include  a new  online  search  engine  'Sky  Learning  Explorer',  as  well  as
relationships  with leading  educational  providers such as the Open University.
Sky Learning's  programme Sky Living for Sport also extended beyond schools this
quarter to launch a new partnership with the charity "V" to promote volunteering
amongst  16-24  year  olds.  Sky  Learning  has been  endorsed  as an  important
supplement to traditional classroom tools by the Innovation Unit which is funded
by government.                                                                  

FINANCIAL SUMMARY                                                               

Our  financial  performance  for the six months to 31  December  2007  reflected
strong top-line growth, investment in high quality programming and strong demand
for additional products.  Total revenue increased by 11% on the six months to 31
December  2006 ("the  comparable  period",  "2007") to GBP2,458  million  (2007:
GBP2,220 million) with reported operating profit of GBP295 million (2007: GBP395
million). Excluding exceptional legal costs of GBP12 million, adjusted operating
profit  was  GBP307  million  (2007:   GBP336  million  excludes  GBP65  million
exceptional  gain from a third  party  channel  provider  and GBP6m  relating to
exceptional  litigation  fees).  Group operating  margin was 12.0% on a reported
basis and 12.5% when adjusted for exceptional  items.  Pay TV operating  margin,
adjusted  for  exceptional  items,  was 18.4% down from 19.8% in the  comparable
period,  due to the start of the new  Premier  League  contract  and the loss of
carriage fees and related advertising revenue from the non-carriage of our basic
channels on Virgin.                                                             

Revenue                                                                         

Group revenue growth was strong,  increasing by 11% on the comparable  period to
GBP2,458 million (2007: GBP2,220 million). Group revenue included GBP107 million
from Sky  Broadband  and Sky Talk (2007:  GBP22  million) and GBP84 million from
Easynet Enterprise (2007: GBP77 million).                                       

Retail  subscription  revenue  increased  by  13% on the  comparable  period  to
GBP1,853  million  (2007:  GBP1,638  million),  the highest growth rate for four
years,  reflecting a 5% increase in the average number of DTH customers and ARPU
growth of 7%.  ARPU  benefited  from a  combination  of the  removal  of viewing
package  discounts,  the 2007 TV package price  increase,  a record pay per view
event and the increased  penetration of additional TV products and broadband and
telephony.                                                                      

Wholesale  subscription  revenue fell by GBP21 million to GBP88  million  (2007:
GBP109 million),  reflecting the non-carriage of our basic channels on cable, as
well as an overall reduction in cable TV premium subscribers.                   

Advertising  revenue  fell by GBP4  million  to  GBP167  million  (2007:  GBP171
million),  reflecting the non-carriage of our basic channels on cable. Excluding
this impact,  our  advertising  share for the six months to December 2007 was up
year on year by 0.3 percentage points to an average of 14.2%.                   

Sky Bet revenue was GBP24 million (2007:  GBP20 million),  an increase of 20% on
the comparable period,  benefiting from the consolidation of 365 Media Group plc
and growth in internet  sports  betting and TV games.  Revenue  from  betting is
accounted for on a net basis, representing the retained margin.                 

Installation,  hardware and service  (IHS)  revenues  increased by 24% to GBP148
million (2007: GBP119 million). Excluding Sky Broadband related revenue of GBP14
million,  IHS revenues  increased 15%, driven by strong product sales to new and
existing  customers in addition to the  introduction of a standard  installation
fee across all products.                                                        

Other  revenue of GBP178  million  (2007:  GBP163  million)  increased  by GBP15
million,  and includes GBP14 million  related to Sky Broadband and GBP82 million
to Easynet  Enterprise.  Excluding these, other revenue declined by GBP5 million
due to lower  revenue from Sky Active and reduced  sublicense  revenue on sports
rights. Revenues from the first time consolidation of Amstrad were also reported
within other revenue.                                                           

Gross margin                                                                    

Gross profit was GBP1,600  million or 65% as a percentage of sales (2007:  66%).
Excluding  the  one-off  receipt of GBP65  million  from a third  party  channel
provider in the  comparable  period,  adjusted  gross  margin  increased  by two
percentage points.                                                              

Programming  costs  of  GBP858  million  increased  by  GBP110  million  on  the
comparable period (2007: GBP748 million). Excluding the one-off receipt of GBP65
million in the prior year,  programming  costs increased by 6% on the comparable
period (2007:  GBP813  million) with 12% growth in sports rights being partially
offset by savings in news and third party channel costs.  Sports costs of GBP466
million in the half year, increased by GBP51 million, reflecting the new Premier
League  agreement  for the seasons  2007/8 to 2009/10.  The annual cost of these
rights is fixed over the three year period of the contract. Third party channels
costs,  adjusted  for the  one-off  receipt of GBP65  million in the prior year,
decreased by GBP8 million to GBP148 million. Benefits from recent renegotiations
of third party  carriage  agreements,  more than offset  payments to Setanta for
including their Premier League games in commercial subscriptions. Movie costs of
GBP143  million  were flat on the  comparable  period  with a  foreign  exchange
benefit  offset  by  increased  investment  in our Sky  Anytime  and Sky  Movies
portals. News and entertainment costs of GBP101 million were GBP2 million higher
than the comparable period, with continued investment in Sky One being partially
offset by savings at Sky News.                                                  

Other operating costs                                                           

Other operating costs,  excluding  programming costs, of GBP1,305 million (2007:
GBP1,077  million)  increased  by GBP228  million on the  comparable  period and
include Sky Broadband and Sky Talk operating  costs of GBP195  million,  Easynet
Enterprise of GBP96 million and an  exceptional  legal expense of GBP12 million.
Excluding these items,  other operating costs increased by GBP114 million on the
comparable period to GBP1,002 million (2007: GBP888 million),  reflecting strong
product growth.                                                                 

The acquisition of Amstrad plc was declared  unconditional  on 5 September 2007.
Third party revenue from the acquisition is consolidated  within "Other revenue"
with related costs recorded in subscriber management and administration. The net
financial  benefit of bringing the manufacture of Sky's set-top boxes by Amstrad
in-house, is recorded within marketing costs.                                   

Marketing  costs  increased by GBP30  million to GBP405  million  (2007:  GBP375
million).  This  reflects the upfront cost of strong Sky+ sales,  higher year on
year  above  the  line  spend  and the  costs of  servicing  an  overall  larger
subscriber  base,  partially  offset  by  lower  subscriber  additions  overall.
Subscriber  acquisition costs ("SAC") were level year on year at GBP246 with the
levy of a standard  installation fee and supply chain efficiencies  arising from
the  acquisition  of  Amstrad,  helping to offset the cost of strong Sky+ sales.
Marketing costs include GBP15 million relating to Sky Broadband and Sky Talk and
GBP3 million for Easynet Enterprise.                                            

Subscriber  management costs increased by GBP66 million to GBP379 million (2007:
GBP313 million). More than half of this increase was driven by a full six months
of  Sky  Broadband  and  Sky  Talk  investment,   as  well  as  the  first  time
consolidation of Amstrad.  The remaining  increase was due to the cost of higher
year on year product sales,  which has a  corresponding  benefit to installation
and  hardware  revenues.  Subscriber  management  costs  include  GBP56  million
relating to Sky Broadband and Sky Talk and GBP10 million for Easynet Enterprise.

The remaining other  operating  expenses  totalled GBP521 million (2007:  GBP389
million),  up by GBP132  million on the comparable  period and including  GBP124
million of Sky Broadband costs and GBP83 million of Easynet Enterprise expenses.
Excluding  these items,  underlying  other  operating  costs  increased by GBP49
million to GBP314 million (2007:  GBP265 million),  reflecting the consolidation
of new  businesses  such as Amstrad and 365 Media Group and higher  depreciation
from our recent investment in infrastructure and systems.  Administration  costs
also  included  GBP12  million  exceptional  legal  charges  relating to ongoing
litigation against EDS.                                                         

Exceptional items                                                               

In accordance with IAS 39 "Financial  Instruments:  Recognition and Measurement"
("IAS 39"),  following a review of the carrying value of the Group's  investment
in ITV plc at 28 December 2007, we have  recognised an impairment loss of GBP343
million.  This was determined  with reference to ITV's equity share price at the
28 December 2007 (the last trading day of the Group's reporting period).        

Sky entered into an arrangement with Fox  Entertainment  Group for the effective
exchange  of a 50%  share  in the  National  Geographic  Partnership  UK for 21%
interests in National Geographic Channel (NGC) Network  International,  LLC, and
NGC  Network  Latin  America,   LLC,  which  effectively  operate  the  National
Geographic Channel's  television  operations outside of the US. This transaction
resulted  in a gain of GBP67  million,  recorded  as a gain on disposal of joint
ventures.                                                                       

The Group reported an exceptional charge of GBP12 million within  administration
expenses (2007:  GBP6 million)  relating to costs from the Group's claim against
EDS, which provided  services to the Group as part of the Group's  investment in
CRM systems software and infrastructure.  Litigation is now in the court hearing
stage and we currently expect to incur exceptional costs of around GBP18 million
in total for the 2008 financial year in respect of this claim.                  

Earnings                                                                        

After the Group's share of operating profits from joint ventures of GBP8 million
(2007: GBP6 million),  the gain on disposal of a joint venture of GBP67 million,
a net interest  charge of GBP63 million (2007:  GBP45 million) and an impairment
charge of GBP343  million  relating to the Group's  investment in ITV, the Group
made a loss before tax in the period of GBP36  million  (2007:  profit of GBP356
million).                                                                       

Including  a tax charge of GBP76  million,  the  Group's  loss after tax for the
period was GBP112 million (2007:  profit of GBP246 million),  generating a basic
loss per share of 6.4 pence (2007 earnings per share: 14.0 pence). Excluding all
exceptional  items,  profit after tax for the period was GBP170  million  (2007:
GBP199 million), generating adjusted earnings per share of 9.7 pence (2007: 11.3
pence).  The issued  share  capital at the start and end of the period was 1,753
million.                                                                        

Cash flow                                                                       

EBITDA for the period was GBP415 million  (2007:  GBP486  million).  Including a
working  capital inflow of GBP14 million (2007:  GBP121  million  outflow),  the
Group generated cash from operations of GBP429 million (2007:  GBP365  million).
Working  capital in the  comparable  period was  impacted  by the  receipt of an
exceptional third party settlement.                                             

Free  cashflow  increased  by 21% on the  comparable  period  and  included  net
interest payments of GBP64 million,  (2007: GBP60 million) tax payments of GBP80
million (2007:  GBP39 million) and capital  expenditure of GBP153 million (2007:
GBP158  million).  Capital  expenditure  included GBP55 million of broadband and
Easynet  Enterprise  related spend. After net acquisition spend of GBP71 million
mainly  relating to the purchase of Amstrad plc,  dividends paid to shareholders
of GBP156  million and other sundry  items,  net debt as at 31 December 2007 was
GBP1,973 million.                                                               

CORPORATE                                                                       

The Directors are declaring an interim dividend of 7.1 pence per Ordinary Share,
an increase of 8% on the comparable  period,  reflecting the Group's strong cash
generation  and  confidence  in  the  future  prospects  of  the  business.  The
ex-dividend date will be 26 March 2008 and the dividend will be paid on 18 April
2008 to shareholders of record on 28 March 2008.                                

During the quarter,  the Group announced changes to the Board of Directors which
saw Rupert Murdoch  stepping down from his role as Chairman and as a Director of
the Company. He is succeeded by James Murdoch,  who was appointed to Sky's Board
as Non-Executive  Director in February 2003 and was Chief Executive Officer from
November  2003 until  December  2007.  This followed a  consultation  with major
shareholders.  The  Board  appointed  Jeremy  Darroch,  previously  Sky's  Chief
Financial Officer, as Chief Executive Officer.                                  

We would like to extend our thanks and appreciation to Rupert Murdoch who became
Director of the Company in 1990 and has served as Chairman since 1999. The board
would like to pay tribute to his unique  contribution.  During the course of his
involvement,  Sky has grown from a start-up to  Europe's  most  valuable  pay TV
company,  reaching  one in  three  households  in the UK and  Ireland,  and more
recently has expanded into the broader communications industry.                 

On  5  February  2008,  Nicholas  Ferguson,   Senior  Independent  Non-Executive
Director,  was  appointed as an  additional  member of the  company's  Corporate
Governance and Nominations Committee.                                           

Use of measures not defined under IFRS                                          

This  press  release  contains  certain  information  on the  Group's  financial
position, results and cash flows that have been derived from measures calculated
in accordance with IFRS. This information should not be read in isolation of the
related IFRS measures.                                                          

Forward-looking statements                                                      

This document contains certain forward-looking  statements within the meaning of
the United States Private Securities  Litigation Reform Act of 1995 with respect
to the Group's  financial  condition,  results of operations  and business,  and
management's  strategy,  plans and  objectives for the Group.  These  statements
include,  without  limitation,  those that express  forecasts,  expectations and
projections  with respect to the potential for growth of free-to-air and pay-TV,
fixed line telephony, broadband and bandwidth requirements,  advertising growth,
DTH subscriber growth,  Multiroom,  Sky+ and other services penetration,  churn,
DTH and other revenue,  profitability  and margin growth,  cash flow generation,
programming costs,  subscriber management costs,  administration costs and other
costs, marketing  expenditure,  capital expenditure programmes and proposals for
returning capital to shareholders.                                              

These  statements (and all other  forward-looking  statements  contained in this
document)  are not  guarantees of future  performance  and are subject to risks,
uncertainties  and other factors,  some of which are beyond the Group's control,
are  difficult  to predict and could cause actual  results to differ  materially
from those expressed or implied or forecast in the  forward-looking  statements.
These factors include,  but are not limited to, the fact that the Group operates
in a  highly  competitive  environment,  the  effects  of  laws  and  government
regulation  upon the Group's  activities,  its reliance on technology,  which is
subject to risk, change and development,  failure of key suppliers,  its ability
to  continue  to obtain  exclusive  rights to  movies,  sports  events and other
programming content, risks inherent in the implementation of large-scale capital
expenditure projects,  the Group's ability to continue to communicate and market
its services effectively, and the risks associated with the Group's operation of
digital television transmission in the U.K. and Ireland.                        

Information  on the  significant  risks and  uncertainties  are described in the
"Risk Factors" section of Sky's Interim Management Report for half year ended 31
December 2007.  Copies of the Interim  Management  Report are available from the
British Sky Broadcasting web page at www.sky.com/corporate.  All forward-looking
statements in this document are based on  information  known to the Group on the
date hereof. The Group undertakes no obligation publicly to update or revise any
forward-looking  statements,  whether  as a result  of new  information,  future
events or otherwise.                                                            

Appendix 1 - TV Subscriber and Market Data                                      

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                                                   Second quarter as  First quarter as at    Second quarter as
                                                 at 31 December 2007    30 September 2007  at 31 December 2006
                                                                                                              

DTH homes1,2 (3)                                           8,832,000            8,665,000            8,441,000

Total TV homes in the U.K. and Ireland(4)                 27,093,000           26,966,000           26,766,000

DTH homes as a percentage of                                     33%                  32%                  32%
total U.K. and Ireland TV homes                                                                               

Cable - U.K.                                               3,528,000            3,428,000            3,397,000
Cable - Ireland                                              601,000              592,000              605,000
Total pay TV homes                                        12,961,000           12,685,000           12,443,000
Total pay TV homes as a percentage of total U.K.                 48%                  47%                  46%
and Ireland TV homes                                                                                          

Sky+ homes(5)                                              3,131,000            2,697,000            1,968,000

Multiroom homes(6)                                         1,531,000            1,411,000            1,226,000

HD homes                                                     422,000              358,000              184,000

DTT (freeview only) - U.K.(7)                              9,332,000            9,139,000            7,703,000


(1) Includes  DTH  customers in Republic of Ireland of 535,000 as at 31 December
2007                                                                            
(2) DTH customers includes only primary subscriptions to Sky (no additional Sky+
or Multiroom subscriptions are counted). This does not include Freesat customers
who do not subscribe to an additional Sky service or churned  customers  viewing
free-to-air channels                                                            
(3) DTH homes include subscribers taking Sky packages via DSL through Tiscali TV
(4) Total U.K. homes estimated by BARB and taken from the beginning of the month
following the period end (latest figures as at 31 December 2007).  Total Ireland
homes estimated by Ireland's Central Statistics Office                          
(5) Sky+ homes includes HD households                                           
(6) Multiroom  includes  households  subscribing  to more than one digibox.  (No
additional  units  are  counted  for  the  second  or any  subsequent  Multiroom
subscriptions)                                                                  
(7) DTT homes  (Freeview  only) estimated by OFCOM and taken from the end of the
previous  quarter (latest figures as at 30 September 2007) except for prior year
comparative  which is actual at 31 December  2006.  Prior year figures have been
restated (previously sourced from BARB) and relate to unique TV households      

Appendix 2 - Glossary                                                           

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------------------------------------------- ------------------------------------------------------------
Useful definitions                          Description                                                 
                                                                                                        
------------------------------------------- ------------------------------------------------------------
Adjusted earnings per share                 Adjusted profit divided by the weighted average number of   
                                            ordinary shares during the year.                            
------------------------------------------- ------------------------------------------------------------
Adjusted operating profit                   Operating profit before taking account of exceptional       
                                            items.                                                      
------------------------------------------- ------------------------------------------------------------
Adjusted profit for the period              Profit for the period adjusted to remove mark-to-market     
                                            movements in derivative financial instruments that do not   
                                            qualify for hedge accounting and exceptional items.         
------------------------------------------- ------------------------------------------------------------
ARPU                                        Average Revenue Per User: the amount spent by the Group's   
                                            residential subscribers in the quarter, divided by the      
                                            average number of residential subscribers in the quarter,   
                                            annualised.                                                 
------------------------------------------- ------------------------------------------------------------
Churn                                       The number of DTH subscribers over a given period that      
                                            terminate their subscription in its entirety, net of        
                                            former subscribers who reinstate their subscription in      
                                            that period (where such reinstatement is within a twelve    
                                            month period of the termination of their original           
                                            subscription), expressed as a percentage of total           
                                            subscribers.                                                
------------------------------------------- ------------------------------------------------------------
Customer                                    A subscriber to a DTH service.                              
------------------------------------------- ------------------------------------------------------------
DTH                                         Direct-to-home: the transmission of satellite services      
                                            with a reception through a mini-dish.                       
------------------------------------------- ------------------------------------------------------------
EBITDA                                      Earnings before interest, taxation, depreciation and        
                                            amortisation is calculated as operating profit before       
                                            depreciation and amortisation or impairment of goodwill     
                                            and intangible assets.                                      
------------------------------------------- ------------------------------------------------------------
Free cash flow                              The amount of cash generated by Sky after meeting           
                                            obligations for interest and tax, and after all capital     
                                            investment and net cash flows relating to our joint         
                                            ventures and associates.                                    
------------------------------------------- ------------------------------------------------------------
Gross margin                                Revenue less programming expenses as a proportion of        
                                            revenue.                                                    
------------------------------------------- ------------------------------------------------------------
Gross profit                                Revenue less programming expense.                           
------------------------------------------- ------------------------------------------------------------
HD                                          High Definition.                                            
------------------------------------------- ------------------------------------------------------------
Multiroom                                   Installation of one or more additional set-top-boxes in     
                                            the household of an existing DTH customer.                  
------------------------------------------- ------------------------------------------------------------
Net debt                                    Cash, cash-equivalents, short-term deposits, net of         
                                            borrowings and borrowings related derivative financial      
                                            instruments.                                                
------------------------------------------- ------------------------------------------------------------
On-net                                      Customers subscribing to our unbundled broadband product.   
------------------------------------------- ------------------------------------------------------------
Product                                     Any service chosen by a Sky customer.  These include DTH,   
                                            Sky+, Multiroom, Sky HD, Sky Broadband and Sky Talk.        
------------------------------------------- ------------------------------------------------------------
Sky Broadband and Talk                      Sky Broadband, Sky Talk and UK Online combined.             
------------------------------------------- ------------------------------------------------------------
Sale                                        A sale is a gross addition of any product.                  
------------------------------------------- ------------------------------------------------------------
Sky+                                        Sky's fully-integrated Personal Video Recorder (PVR) and    
                                            satellite decoder.                                          
------------------------------------------- ------------------------------------------------------------
Underlying                                  Excluding contribution from Sky Broadband and Talk,         
                                            Easynet Enterprise and exceptional items.                   
------------------------------------------- ------------------------------------------------------------
Viewing share                               Number of people viewing a channel as a percentage of       
                                            total viewing audience.                                     
------------------------------------------- ------------------------------------------------------------

Appendix 3 - Consolidated condensed financial information                       

Consolidated Income Statement for the half year ended 31 December 2007          

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

 -------------------------------------------------------------------------------------------------------  
| Adjusted earnings per share from adjusted profit                                                       |
| for the period (in pence)                                                                              |
| Basic                                                    6             9.7p        11.3p        26.3p  |
| Diluted                                                  6             9.7p        11.3p        26.1p  |
 -------------------------------------------------------------------------------------------------------  

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

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---------------------------------------------------------------------------------------------------------
                                                                  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 
Adjusted basic and diluted                                                                  4.7                 5.0 
------------------------------------------------------------------------------------------------------------------- 

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                               

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

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

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

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

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--------------------------------------------------------------------------------------------------------------------
                                                                            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.                   

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                                                                            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   
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7    Dividends                                                                                                      

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

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                                     Share     Share      ESOP  Hedging Available    Other Retained          Total  
                                                                             -for                            share  
                                                                             sale                         holders'  
                                   capital   premium   reserve  reserve - reserve reserves earnings      (deficit)  
                                       GBP       GBP       GBP      GBP       GBP      GBP      GBP         equity  
                                   million   million   million  million   million  million  million    GBP million  
                                                                                                                    
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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)   
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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   
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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)   
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9    Notes to the consolidated cash flow statement                              

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

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