Sky reports 18% jump in annual profits

Sky’s net profit for the fiscal year ended June 30 rose to 1.96 billion pounds ($3.06 billion) from GBP865 million in the year preceding.

Significantly, the level of customer churn in the UK and Ireland fell to its lowest for 11 years, which Sky said reflected its investment in “connected services and quality content”.

“The UK and Ireland, where our strategy is most progressed, put in a particularly strong performance”. The number of products its existing customers use, including broadband Internet and high-definition TV, jumped by 829,000 in the quarter. “Our operating momentum delivered a 5 per cent increase in revenues which combined with a relentless focus on costs to achieve an 18 per cent increase in operating profit”.

He added the group was off to a “strong start” following its deal last November to buy Sky Italia and a majority interest in Sky Deutschland, which saw it change its name from BSkyB to Sky.

“It’s clear that the steps we have taken to broaden out our business are paying off. By distributing our content over multiple platforms and launching new products and services, we are now able to offer something for every household”, said Sky chief executive Jeremy Darroch.

“We’ve successfully completed a deal that has transformed the size and scale of opportunity for the business whilst delivering an excellent financial and operational performance”.

Sky also launched several original programmes over the past year that have gone on to be a success, like Fortitude and 1999.

Shares rose 2% after the results. In the fourth quarter, it added 158,000 new customers.

Total revenues, also on a like-for-like basis, grew 5% to £11.28bn.