EPL deal drives up BSkyB costs BSKYB's net profits sank in the first quarter of its financial year, hit by rising investment costs and a challenging trading environment, the British pay-TV giant said yesterday. Profits after taxation fell almost 12 per cent to 193 million pounds ($A324 million) in the three months to September 30, compared with 219 million pounds in the same period last year, the company said in a results statement. Earnings were hit by heavy investment in new services and a more expensive broadcasting deal to screen English Premier League football matches. Revenues however grew 7 per cent to 1.843 billion pounds in the reporting period, aided by swelling subscriber numbers. BSkyB, which is 39 per cent-owned by Rupert Murdoch's News Corp, added that pre-tax profits dipped 15 per cent to 245 million pounds. "While the consumer environment remains challenging, we are well-placed as we execute a strong set of plans for the rest of the year," chief executive Jeremy Darroch said in the statement. The group's products include English Premier League football and blockbuster movies, as well as internet and telephone services. BSkyB is meanwhile facing greater competition in the pay-TV sector. British telecoms firm BT launched its own live television sport channels earlier this year in a direct challenge to Sky's dominance of pay-TV sport. BT began televising some live English Premier League football matches in August.