Sky’s EDS legal fees to rise to £18m


Sky’s EDS legal fees to rise to £18m

John-Paul Kamath

BSkyb's ongoing court action against EDS will cost it £18m in legal fees this financial year - a rise of £6m on the total in 2007.

The EDS court case had cost Sky £7m in the three months ending 30 September 2007 and rose to £12m in the six months ending December 2007.

Results published this week show the broadcaster predicts the legal costs will once again rise this year.

Sky is claiming £709m for lost benefits because of late delivery.

EDS, who provided services to Sky as part of its investment in CRM systems software and infrastructure, is being sued by Sky for allegedly misrepresenting its capabilities when bidding in 1999 for the £48m contract. EDS denies the claim.

Operating profit of £295m was stated after £103m of investment in Sky Broadband, Sky Talk and Easynet Enterprise and legal costs.

Sky reported an additional 260,000 broadband and 236,000 talk customers, as it expands its broadband and telephony divisions.

"This is the peak of our investment in broadband and the business financially is performing bang in line with expectations," said Jeremy Darroch, CEO of Bskyb.

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