Cityam%202013-05-16

cityam.com
Millions to switch to BT internet
for free Premier League football
BY JAMES TITCOMB offering for free to its own internet
MILLIONS of broadband subscribers
are set to drop their current
provider to switch to BT, having
been tempted by the carrot of free
Premier League football on TV.
Initial figures from Usurv, an
internet pollster, said that eight per
cent of Sky’s TV customers –
around 832,00 households – plan to
switch from their current provider
to BT. The research also said that
six per cent of TalkTalk and Virgin
Media broadband customers –
roughly 500,000 people – intend to
switch in order to take advantage
of the sports channels BT is
Europeans shun
PCs as sales see
worst ever fall
BY JAMES TITCOMB
PERSONAL computer sales have
plummeted in Western Europe, as
Microsoft’s Windows 8 software has
failed to capture customers’ imaginations
and shoppers have turned to
tablets such as Apple’s iPad.
Data from technology researchers
Gartner showed that PC sales in the
first quarter of 2013 were 12.3m –
20.5 per cent down on a year earlier.
The decline was far more pronounced
than that for worldwide
sales, which were down 11.2 per cent
in the same period, according to
Gartner. In the UK, sales fell 16 per
cent to 2.5m, with laptops falling
much faster than desktops.
“Many consumers no longer
require a PC as usage of smartphones
and tablets takes over,” Gartner’s
Ranjit Atwal said. He said that laptop
sales were down 22 per cent in the
UK, while desktops fell 5.2 per cent,
and that the decline was much more
pronounced in the consumer space
than for business purchases.
subscribers.
Although the figures are unlikely
to give a completely accurate
reflection of the market, and there
is some overlap between the two
sets of customers, they still suggest
that more than 1m people already
intend to switch from rival
operators. BT announced a week ago
that it would hand those who sign
up to its broadband packages freeof-charge
access to its three new
sports channels, which include the
rights to 38 Premier League games a
season, as well as Premiership rugby
and foreign football leagues.
The move is the biggest shake up
Although the UK market declined
significantly, it was reasonably robust
next to France, where PC sales fell by
more than 25 per cent. Computer
manufacturers such as Dell and HP
have been counting on the success of
Microsoft’s new Windows 8 software
to drive better sales, but yesterday’s
figures suggested that the effect had
been muted. Windows 8 has introduced
a new interface designed for
tablets and touchscreen computers,
but the software has been criticised
as being un-intuitive and too much of
a break from previous versions.
“Wide availability of Windows 8based
PCs could not boost consumer
PC purchases during the quarter,”
Meike Escherich, an analyst from
Gartner said. “Although the new user
interface suits new form factors,
users wonder about its suitability for
traditional PCs — non-touchscreen
desktops and notebooks.”
Hewlett-Packard and Acer – the two
top sellers in Western Europe – were
the biggest losers, falling 31.7 per
cent and 36.8 per cent respectively.
Amazon attacked for paying a
corporation tax bill of £3.1m
BY JAMES TITCOMB Politicians criticised the figures
AMAZON paid £3.1m in UK
corporation tax last year and
deferred payment of a further
£2.2m, accounts revealed
yesterday. Its bill for 2012 alone
was £2.4m, on sales of $6.5bn
(£4.3bn) in the country.
The US giant’s UK subsidiary,
Amazon.co.uk Limited, posted
annual turnover of £320m, leading
to a £10.9m pre-tax profit and
taxes of £2.44m. Common Market
rules allow most of Amazon’s
European sales to be run through
its affiliate in Luxembourg, where
it pays a much lower tax rate.
in an effort to stoke public anger
ahead of Google appearing in
front of the Public Accounts
Committee this morning. The
search engine has also been
attacked for its UK tax payments
and faced new accusations
regarding where its sales are based
earlier this month.
The UK is Amazon’s third largest
market, and brought in sales of
$6.5bn in 2012, according to the
company’s annual report, a 21 per
cent increase on 2011.
Amazon did not comment
yesterday but has said that it obeys
all UK tax laws.
THURSDAY 16 MAY 2013
of sports TV in more than 20 years,
and is an aggressive bid from BT to
shore up its broadband base, which
has been threatened by Sky’s entry
into the market.
More worryingly for Sky, Usurv’s
research said that six per cent of
Sky TV customers are considering
cancelling their TV contract, the
company’s most lucrative business.
Analysts appeared to disagree
with the suggestion that Sky’s TV
base will suffer, however. Claire
Enders of media researchers Enders
Analysis said: “The BT Sport product
is not strong enough to cause any
but the slightest erosion of Sky
Sports residential customers.”
To have never used the internet
60.0 %
50.0
40.0
30.0
20.0
10.0
16-24 25-34 35-44 45-54 55-64 65-74 75+
Ageas UK sees
profits increase
BY JAMES WATERSON
THE COMPANY that operates an
insurance joint-venture with Tesco
yesterday unveiled a healthy rise in
profits for the first three months of
the year.
Ageas UK, a subsidiary of the
Belgian group, said profits rose 38
per cent to £19.4m.
But new business volumes
declined slightly year-on-year to
£511.3m, despite acquiring the
Groupama UK business during the
intervening period. Ageas UK said
this was due to tough competition
on premiums, particularly in the
motor insurance market.
NEWS
Blockbusters help
Cineworld takings
BY MARION DAKERS
CINEWORLD has
boosted revenues
since the start of
the year by raising
ticket prices to
offset falling
admissions.
The firm, which is
poised to enter the
FTSE 250 in next month’s
reshuffle, said the average
ticket price has risen 3.9
per cent since 28 December,
helping boost box office
revenues 11.4 per cent
despite admissions
Those who have never used the internet are disproportionately older and less well-off
Internet use is on the rise but
7m have still never gone online
BY JAMES TITCOMB
MORE than 7m adults have never
used the internet, figures from the
Office For National Statistics (ONS)
revealed yesterday.
Although the number of adults
who use the internet regularly is
increasing, 7.1m have never logged
on. Those who do not receive the
benefits of being online are
disproportionately older and less
well-off, the data said.
And 3.1m over-75s – or 65.5 per
cent of that age group – do not go
online. This is compared to 33.4
per cent of those aged between 65
and 74, and 15 per cent of 55-64
year-olds. Of those in employment
to have never used the internet, 60
per cent earn less than £299 a
week.
Although the surprising figures
showed that millions of people
have never gone online, the
picture is improving. Two years
ago almost 9m people had never
used the internet, and a year ago it
was 8.1m.
Among those who had never
used the internet, almost six in 10
were female.
BRITAIN should make more
government data publicially
available in order to boost the
economy, according to a government
report released yesterday by YouGov
boss Stephan Shakespeare, who is
also chair of the Data Strategy Board.
The report says policy decisions on
matters such as health and transport
should be driven by data analysis.
“To paraphrase Sir Terry Leahy, to
run an enterprise without data is
like driving by night with no
headlights,” explains Shakespeare,
who writes a column for City A.M.
“Yet that is what government often
13
“marginally lower” than last year.
Cineworld’s purchase of
Picturehouse also helped lift
takings. The deal has been referred
to the Competition Commission.
Other income, including screen
advertising, was up 53.9 per
cent on the previous year.
Blockbusters such as
the latest instalments of
Iron Man, Star Trek and
the Hunger Games are
set to drive sales for the
rest of the year.
IN BRIEF
Iron Man 3 has helped
revenues at Cineworld
Pinewood’s expansion blocked
n South Bucks district council
yesterday rejected Pinewood
Shepperton’s £200m site extension
plan designed to help it compete
internationally. The plans would
increase the studio capacity at the
centre - where James Bond is filmed -
by 100,000 square metres. “It is hard to
believe, given the country’s economic
difficulties that SBDC would turn down
a £200m project creating 3,100 jobs,”
said chief exec Ivan Dunleavy.
Datatec profit falls due to Europe
n South African software company
Datatec saw revenues rise four per
cent to $5.25bn (£3.45bn) in the year
to the end of February, the firm
revealed yesterday, although profits
slid from $138m to $127m. The
company’s networking technology is
sold in over 100 countries but it has
been hit by poor demand in Europe
recently. However the company, which
has a second listing in London, saw
shares rise by 4.44 per cent
Lonmin miners back to work
n Striking workers at Lonmin, the
FTSE listed miner, were returning to
work late last night, signalling a
breakthrough in talks between unions
and the company. Miners at its South
African platinum mines had downed
tools for wildcat strikes over a
shooting last weekend. It prompted
fears of a return to last year’s violence,
when 34 miners were shot dead.
Lonmin said discussions with workers
were “on-going”.
Report says releasing official
data will boost the economy
BY JAMES WATERSON does. It has a strong institutional
tendency to proceed by hunch, or
prejudice, or by the easy option.”
Shakespeare recommends
creating a new centrally-defined
National Data Strategy and wants
public sector bodies to publish data
swiftly “even if imperfect”.
He also suggests government
agencies such as Companies House,
the Land Registry and Ordnance
Survey should prioritise the overall
economy rather than their own
income when charging for data.
The report cites the example of
releasing live data on London bus
times, which it says has saved the
economy up to £58m in work time.