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BSkyB Profits Soar, But Stock Sinks

Wednesday was a day of good news and bad news for British Sky Broadcasting Group plc.

The company said its profit after tax, goodwill amortization and exceptional items of £322 million ($586 million) in the year ended June 30 was up 75% from £184 million ($335.7 million) the previous year.

However, the markets were not happy with the company’s long-term growth plan, unveiled Wednesday, which set a target of reaching 10 million direct-to-home subscribers by 2010 versus 7.4 million now.

As a result of the £450 million ($819 million) investment program, BSkyB shares fell 14.53% to 514.50 pence ($9.36) in trading on the London Stock Exchange Wednesday.