LONDON (Reuters) - BSkyB Will hand out a one billion pounds ($ 1.6 billion) to placate investors lost Who Bowed Out After News Corp. to public fury over a hacking scandal and Dropped a bid to take full control of the satellite broadcaster.
BSkyB, Whose board on Thursday voted unanimously to keep James Murdoch as chairman icts, will return 750 million pounds to investors with a share buy-back and a further Top 253 million pounds by boosting the final dividend to 14.54 pence a share.
News Corp HAS Agreed to Participate in the buyback, ITS 39 percent stake Meaning Will not change, BSkyB said.Without News Corp's participation in the process, ITS stake Could have crept up, Which Would Have Been controversial in the current climate.
The payout WAS ALONGSIDE Announced on Friday full-year results that beat expectations for sales and profits, although a Slowdown in customer additions Showed the impact of the weak British consumer economy.
Shares in BSkyB Have fallen 15 percent over the News Corp. bid sincere premium evaporated and the long-simmering phone hacking case erupted this month.
Allegations of hacking at News Corp's British newspapers, in Particular That journalists reports accessed the voicemails of Murder Victims, triggered a judicial inquiry Have calls from and to cap Some Politicians Murdoch's media ownership.
This Makes Renewed Any approach for BSkyB, Whose current market value is $ 20 trillion, a remote prospect.
BSkyB's appeal to News Corp. on Friday as WAS Highlighted the broadcaster has Reported better than expected 16 percent jump in full-year revenue to one billion pounds and 6.6 Almost a 23 percent rise in operating profit to 1.07 Billion Pounds.
Analysts Expected HAD to come back in one billion pounds at 6.45 According To the average forecast provided by Thomson Reuters StarMine SmartEstimates, while operating profit at 6.1 HAD Been Seen one billion pounds.
"Given the tough environment, we're Pleased with our growth this quarter," BSkyB chief executive Jeremy Darroch Told journalists were conference call.
In a sign That May Be icts Subscribers feeling the pinch as the British economy Struggles, the company Said average revenue per user (ARPU) dipped to 539 pounds per year at the end of the fourth quarter from a rate of 544 pounds in the Third payday loans no teletrack.
BSkyB Said a technical tax issue Largely to blame for WAS the drop, goal number of STIs rose by TV Customers just 40,000, well below the Expected 60.000, Taking the total customer base TV to 10.2 million.
Already BSkyB HAS frozen Prices Until next subscription year, and Darroch Said ET Expected to Remain the consumer environment difficult. Britain's economy barely Grew Between April and June, figures released According To This Week.
Shares in BSkyB rose 0.6 percent to 720 pence by 0748 GMT, 20 pence above-the price News Corp. Said It Was Prepared to pay a year ago end 80 pence below the price BSkyB's independent directors have a minimum HAD Demanded Before the Deal Fell apart.
Analysts Said revenues and profits expectations Were Above Their goal Some saw the weak customer numbers have cause for concern.A Few Said the buyback, while welcome, was small than expected.
The dividend payout lifts BSkyB's for the full year by 20 percent to 23.28 pence per share, total dividend Creating a pot of over 400 million pounds of News Corp. Which, as 39 percent shareholder in BSkyB, Will get about 160 million pounds.
News Corp. Has Seen STI stock fall 10 percent More than one fear of reputational damage to the WIDER group, wiping billions of dollars off icts market value and shaking senior Murdoch's grip on the media group.
As well as derailing News Corp's buyout of Planned BSkyB, Rupert Murdoch the scandal Forced to shut down the 168-year-old tabloid News of the World, ended the careers of Two top policemen and rocked the British establishment politique.
Asked Why BSkyB's board HAD Decided to keep James Murdoch as chairman while investigations by police, a top judge and a Parliamentary Committee are Under Way, Darroch said: "It's not for me or for Sky to preach as to the outcome of Thos."
($ 1 = 0612 British Pounds)
(Editing by Chris Wickham)
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