Sky publishes ‘strong’ results for six months to Dec-17

26 Jan 2018

UK-based Sky has released its financial results for the six months ended 31 December 2017, reporting a 5% year-on-year increase in turnover to GBP6.74 billion (USD9.6 billion). In terms of regional breakdowns, the company’s UK and Ireland division generated the lion’s share of revenues, GBP4.44 billion, up from GBP4.23 billion in H1 2016/17, while its Germany and Austria operations recorded turnover of GBP1.02 billion, up 8% y-o-y, and its Italian unit GBP1.28 billion (GBP1.23 billion). Meanwhile, EBITA for its ‘established business’ – which is describes as those operations that have been established ‘for many years’ and include its entertainment and fixed line communications businesses in the UK and Ireland, Italy, and Germany & Austria – totalled GBP1.18 billion, up 15% against GBP1.03 billion in the corresponding period of 2016. Meanwhile, Sky’s ‘Investment Business’ – i.e. new businesses from the first year of launch through to their first year of profitability, including Sky Mobile and Sky Spain – saw a negative EBITDA of GBP63 million. Operating profit in the six-month period under review was GBP573 million, up from GBP461 million.

While the company no longer breaks out detailed subscriber data, it did note that across the UK and Ireland it had added a total of 180,000 customers in the six months to 31 December 2017, including 30,000 new ‘broadband products’. In addition, it noted that fibre penetration had increased to a third of the broadband base in these two countries, up from 21% a year ago. With regards to its recently launched mobile proposition in the UK, Sky reported that it had grown it subscriber base to 335,000, having added 131,000 customers in the last three months of the year alone. Sky also claimed to have made ‘good progress pursuing the significant growth opportunity in Europe’s largest TV market’, having added 200,000 new customers across Germany and Austria in H1 2018, but in Italy it revealed it had shed 15,000 customers, with this attributed to ‘an uncertain economic environment and a tick up in churn following the introduction of four-week billing’.

United Kingdom, Sky, Sky Deutschland, Sky Ireland, Sky Italia