Sky reports gains despite ‘slow start’

Sky reported like-for-like revenue growth and the addition of more than 100,000 new customers, despite a “slower start” to its fiscal first quarter.

Announcing results for the three months ending September 30, Sky said that it goes into Q2 with “good momentum” after a stronger September offset a quieter start to Q1 trading – due to the UEFA Euro 2016 football tournament and the summer Olympics.

Sky’s group revenues for the quarter – across the UK and Ireland, Germany and Austria, and Italy – increased 13% to £3.15 billion (US$3.84 billion), with European revenues benefitting from the stronger currency. Like-for-like revenues were up over 5%.

Total new customer additions across Sky’s territories came to 106,000 in the quarter – down compared to 134,000 new additions in the same quarter a year earlier. However, in Italy Sky reported its highest Q1 customer growth in four years.

Sky added most customers in Germany and Austria with 49,000 new additions for the quarter, followed by the UK and Ireland at 35,000. Italy achieved its fourth consecutive quarter of positive growth, adding 22,000 customers.

“I’m pleased with the start we have made to the year, with like-for-like revenue growth of over 5% and more than 100,000 new customers joining Sky,” said group CEO Jeremy Darroch (pictured).

“We finished the quarter strongly after a slower start against the backdrop of the Rio Olympics and UEFA Euro 2016. It was also a strong quarter of innovation with the launch of our new streaming service, Sky Ticket, in Germany; Ultra HD in the UK, Ireland, Germany and Austria; and our enhanced mobile TV proposition, Sky Go Extra, in Italy, as we transform all our markets to multi- platform distribution services.”

Darroch said that Sky’s forthcoming launch of a mobile phone service in the UK would add “another major product offering” and give consumers more opportunity to engage with the Sky brand.

In Germany new developments include the upcoming launch of Sky 1, while in Italy this quarter will see the launch of HD programming on-demand and the Sky Kids app.

“We are on track as we enter our busy Q2 trading period and we remain focussed on delivering our clear strategy for growth,” said Darroch.