UK satellite broadcaster BSkyB recorded spiralling losses on July 25, but indicated that it had now born the brunt of costs of moving to digital.
Pre-tax losses before were nearly double those of the previous year at $733.6m (£514m) after goodwill, interest, share of joint ventures' losses and exceptional items. But the broadcaster has now switched the majority of its subscribers to digital. The digital service boasts 5.3 million subscribers out of BSkyB's total of 5.45 million.
"We look forward to delivering positive cashflow from the end of this calendar year onwards,' said Tony Ball, BSkyB's chief executive.
BSkyB aims to switch off its old analogue service in September and plans to reach seven million subscribers by the end of 2003.
Operating profit rose to $228.4m (£160m), up 88% on the year before. Revenues were up 25% at $3.3bn (£2.3bn).
The pay-TV operator said it expects to reach an average revenue per subscriber of $571 (£400) by 2005, including $71 (£50) from interactive revenues. At the end of June, revenue per subscriber was at $467 (£313), with $16 (£11) from interactive revenues.
"We continue to add record numbers of subscribers and increase the average revenue per subscriber," said Ball. "We therefore remain on track to meet both our subscriber and ARPU targets."