Sky Earnings, Subs Rise in Strong Q3 Results

April 21, 2015 World Screen Top Stories
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LONDON: Sky has reported a 5 percent year-on-year increase in group revenue to £8.45 billion ($12.6 billion) for the quarter ended March 31, driving a 20 percent increase in operating profit to £1.03 billion ($1.5 billion).

Across the portfolio, there were 242,000 net new customers in Q3, nearly 70 percent more than the prior year, bringing Sky's customer base to 20.8 million. Paid-for subscription products increased by 1 million, taking total product sales to 3.8 million for the year to date.

While there was customer growth in all territories, the U.K. and Ireland saw the highest Q3 gains in 11 years at 127,000, 41 percent up on the prior year. Sky in Germany and Austria achieved a strong period of growth, with 103,000 new retail customer additions, 61 percent more than the same period last year. Sky had its best Q3 performance in Italy in three years, with 12,000 new customers additions. These gains reversed a net loss of customers in the previous year and resulted in a second consecutive quarter of positive growth.

Jeremy Darroch, the group chief executive at Sky, commented: “We have delivered an excellent third quarter as customers across the enlarged Sky group respond to the quality and breadth of what we offer. In all, we attracted almost 70 percent more new customers than the prior year and over 1 million new products. By continuing the strong operating momentum of the first half, we have grown revenues by 5 percent and operating profit by 20 percent over the nine months.

“The U.K. and Ireland delivered a stand-out performance, reporting both the highest customer growth and lowest churn for eleven years. We took share in broadband and grew strongly in TV as our dual-brand strategy with NOW TV and Sky continues to deliver. At the same time, Germany enjoyed another record quarter of growth and Italy posted its best Q3 customer growth in three years. We’ve also delivered significantly increased customer loyalty in each of our businesses.

“We are particularly excited by our progress in original drama. Fortitude debuted as the most successful drama ever on Sky Atlantic in the U.K., 1992 opened as our most successful original scripted series in Italy, while Germany took its first steps in international co-production with 100 Code.

“As these results demonstrate, our teams are working well together right across the new Sky. Five months in, our integration plans are progressing well and we are well positioned for the expanded growth opportunity ahead.”