British Sky Broadcasting Group, the British pay-TV operator controlled by Rupert Murdoch's News Corp., reported a 49% drop in quarterly profit and warned that future earnings would be hurt by an $819-million investment program designed to increase long-term growth.
The news sent the company's shares tumbling. BSkyB's U.S.-traded shares dropped $7.75, or 17%, to $36.85 on the NYSE.
The investment is part of a new long-term growth plan. BSkyB said it had set a target of 10 million subscribers by 2010, up from 7.4 million now.