Sky says United Kingdom customer defections steady in Q3

Andrew Cummings
April 20, 2017

At constant exchange rates, that growth was 5pc.

Advertising revenues in the United Kingdom and Ireland are down 3% year-to-date compared to 2016's numbers, although Sky was quick to point out that it outperformed the general ad market, which it reckons is down 8%.

Operating profits slid from £1.14bn to £1.01bn, largely on the back of higher costs related to the Premier League broadcasting rights, which were £494m higher than last year and saw total costs rise 8% on the year. "We continue to perform well, attracting another 106,000 customers across the group in the quarter, taking growth to 769,000 over the last 12 months".

The company‎ said that more than 100,000 new customers had joined in the most recent quarter, with 769,000 added in the past year, taking the total customer base to 22.4 million.

Jeremy Darroch, chief executive officer (CEO) of Sky, spelled out the challenges confronting the broadcaster in its home market, pointing to economic headwinds in the form of weakened retail sales, consumer confidence and house price inflation and noting that "the environment we're dealing with therefore at the margin puts a little more pressure on the business".

"We have delivered strong revenue growth of 11% and are on track financially with operating profit for the nine months exceeding £1 billion". The $250 million deal will see the two pay TV giants co-commission high-end dramas that can be exploited globally in both HBO and Sky's home markets and via global distribution elsewhere.

Darroch said the goal of the new deal was to "create a new global drama series power house". The focus of the arrangement will be on high end productions that feature engaging stories with global points of view and casting. They claim that the new partnership represents an unrivalled opportunity for production companies to have their content broadcast by two of the leading brands in worldwide television.

Alongside its results, Sky announced a £195m partnership with the U.S. television network HBO.

Sky has said it's looking to produce "high-end drama", it's now working on new projects.

"This new venture deepens that relationship, maintains our leadership position in world-class content".

Other reports by iNewsToday