Sky Grows Subscribers, Posts 10 Percent Rise in Nine-Month Earnings

Angelo Anderson
April 19, 2018

Revenue in Germany & Austria was 6.0% higher year-on-year at GBP1.5 billion versus GBP1.4 billion, while revenue in Italy increased 5.0% to GBP2.0 billion from GBP1.9 billion.

Sky also reported that it added retail customers in the latest quarter, including 70,000 subscribers in the United Kingdom, its largest market, but a decline of 30,000 in Germany and Austria.

As a result, statutory operating profit was GBP857.0 million, up 22% from GBP703.0 million the year before. There was a fall of 2,000 in Italy.

Last week the United Kingdom takeover regulator ruled that Disney must make an offer for the whole of Sky if it succeeds in buying the Fox assets.

Meanwhile, Sky has recently been boosted by the latest extension of its agreement to show Premier League games to 2022 - in a deal which will see it allowed to screen more games at a lower cost.

The company said advertising revenue outperformed the estimated market growth rate in each of its territories, delivering overall growth of 9% to £676 million.

Revenues rose 5 percent year-on-year to GBP 10.14 billion in the first nine months of the fiscal year, and recurring EBITDA was up 14 percent to GBP 1.78 billion.

It comes at a time when all customer-facing businesses are facing the challenge of pressures on household budgets.

In March, the company announced its partnership with Netflix to bundle its full service into a brand new Sky TV pack in Europe.

For the nine-month period ended 31 March 2018, the European pay-TV giant posted revenues of £10.144 billion, up 5% on a like-for-like basis compared to the same period of 2017, reporting good growth in all territories - that is the United Kingdom and Ireland, Germany and Austria and Italy - and all categories.

That is part of what Mr Darroch called the "ongoing transformation" of the business which also includes the roll-out of so-called over-the-top (OTT) services streamed over the internet rather than through the use of a satellite dish.

Further, the company said its business remains on track for the full year.

Other reports by Iphone Fresh

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