Sky sees year-end revenues swell to US$15.8 billion

European pay-TV operator Sky has reaped the rewards of an expanded business as the group's revenues soared by 7% while operating profits swelled by 12% for the year ending June 30. (Pictured: Sky's group chief executive Jeremy Darroch)
July 28, 2016

European pay-TV operator Sky has reaped the rewards of an expanded business by broadening into new customer segments as the group’s earnings and operating profits swelled for the year ending June 30.

The satcaster’s revenue soared by 7% to £11.97 billion (US$15.8 billion). Operating profits across the group also saw a rise of 12% to £1.56 billion (US$2.05 billion).

“The group is leveraging the many opportunities of scale; sharing resources, insights, expertise and innovation,” said Jeremy Darroch (pictured), Sky’s group chief executive, in a statement. “We are investing in a broad range of world-class entertainment in every market, distributed across an unrivaled choice of market-leading platforms and supported by excellent service, because these are the things that really matter to customers.”

In Germany and Austria, the company’s growing customer base provided Sky with a revenue increase of 12% to £1.5 billion (US$2 billion), and a full year of operating profit – £4 million (US$5.29 million) – for the first time in Sky Deutschland’s history.

Sky posted a loss of £11 million (US$14.5 million) last year.

The company further announced that it would bolster its content offering across Germany and Austria with the November launch of Sky 1, which also includes Sky Arts, Sky Atlantic and improved on-demand content. The channel launch will include exclusive unscripted content such as a localized version of culinary series MasterChef.

Sky will also rebrand its current Sky Online offering by providing customers in Germany and Austria with a new streaming service in Sky Ticket. The effort will enable the company to “further tap into the pay lite segment” in the region with enhanced customer offerings.

The UK and Ireland market also delivered a strong financial and operational performance. For the first time, Sky surpassed the £8 billion (US$10.6 billion) mark in revenue, netting £8.37 billion (US$11 billion) – or a rise of 7%. Operating profit, meanwhile, also increased 11% to £1.5 billion (US$1.97 billion). The company will additionally look to launch the brand into the UK mobile market, thereby tapping into new sources of revenue and profits.

Darroch said that Sky’s Italian business is currently outperforming a competitive market with the region’s customer base returning to growth for the first time in five years, gaining 17,000 new customers. Though revenue in Italy climbed 2% to £2.08 billion (US$2.75 billion), the Italian division saw a decrease in operating profit by 14% to £50 million (US$66 million).

“In Italy we have three strategic priorities: to provide the very best TV experience; to offer our services on a choice of platforms; and to drive broad revenue growth across subscription and additional revenue streams,” Darroch said, adding that Sky Italia will launch Sky Go Extra and Sky Q while improving MySky’s offering with HD on-demand content.

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