UK-based pay-TV and telecoms provider Sky has published its financial results for the quarter ended 31 March 2015, reporting a 20% year-on-year increase in operating profit.
In the quarter under review Sky generated a total turnover of GBP8.453 billion (USD12.8 billion), a figure which represented an increase of 5% when compared to the corresponding period a year earlier. Of the total, the company’s operations in the UK and Ireland accounted for more than half, with combined revenues in those two countries totalling GBP5.824 billion in the third quarter of the company’s 2015 fiscal year, up from GBP5.490 billion a year earlier. Meanwhile, revenues in Germany stood at GBP1.037 billion, representing year-on-year growth of 9%, though in Italy the company saw turnover fall slightly, from GBP1.610 billion in the three months ended 31 March 2014 to GBP1.592 billion in this latest reporting period.
Group operating costs were up by just 3%, well below the rate of revenue growth, to GBP7.428 million, which Sky said demonstrated ‘excellent operating cost control whilst [it] continues to invest in content in all markets’. Meanwhile, group operating profit grew strongly, increasing 20% y-o-y to GBP1.025 billion, with this attributed to revenue growth and control over the company’s cost base. Adjusting for depreciation and amortisation of GBP475 million, EBITDA was GBP1.500 billion in the quarter, up from GBP1.355 billion.
Across all its regions of operations Sky reported a total customer base of 25.079 million at end-March 2015, up from 24.287 million a year earlier, with the UK and Ireland combined accounting for the lion’s share – 15.954 million, up from 15.536 million.
Commenting on the results, Jeremy Darroch, Group Chief Executive at Sky, was cited as saying: ‘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% more new customers than the prior year and over one million new products. By continuing the strong operating momentum of the first half, we have grown revenues by 5% and operating profit by 20% over the nine months.’