European pay-TV provider Sky reported operating profit for the nine months to March up 12 percent year-on-year to GBP 1.14 billion after experiencing “good trading” across all its markets. Group revenues grew by 5 percent to GBP 8.72 billion, with a 6 percent increase in UK and Ireland and a 10 percent growth in Germany and Austria offsetting a 2 percent fall in sales in Italy. Overall Sky said 177,000 new customers joined in the quarter to the end of March to reach a total of 21.7 million across its European operations.
However, Sky’s Q3 additions in the UK and Ireland were significantly down on its H1 performance, with the group adding just 30,000 new TV customers in the three months to the end of March after it decided to “focus marketing on building brand awareness for Sky Q”, its new high-end service. Sky said the UK and Ireland rate of churn, which grew from 10.2 percent to 10.7 percent in the quarter, “reflected our decision to limit discounts”. In Germany and Austria the churn rate remained stable quarter on quarter at 9.8 percent, while in Italy it rose from 9.9 percent to 11 percent, the highest rate in at least two years, reflecting the loss of UEFA Champions League football rights.
The media group introduced 686,000 new products in the first three months of the year, taking the overall number of products on offer to 56.6 million, with UK products passing the 40 million milestone. It also secured exclusive coverage of the Formula One World Championship and of all four golf majors in the UK and will broadcast the Euro 2016 Championship in Italy.
