Share

Sky Sales Rise as Pay-TV Network Adds Users in U.K., Ireland

The group added 445,000 new customers across the year, including 93,000 in the fourth quarter.It revealed United Kingdom customers spend on average £400 a year.

Advertisement

Sky finished the year with 21.8 million customers, after adding 808,000 over the year and 160,000 in Q4 alone.

Pan-European pay TV giant Sky on Thursday said it continued to add video subscribers in the latest quarter and year and reported higher pre-tax and operating earnings for its full fiscal year.

However, limited retention discounts and a five per cent TV price rise pushed Sky’s churn rate higher in the United Kingdom and Ireland.

The pay-TV company, which is 39%-owned by Rupert Murdoch’s 21st Century Fox, said its so-called customer “churn” rate in the United Kingdom and Ireland stood at 11.2% in the 12 months to 30 June.

United Kingdom churn is at a recent high, climbing to 11.2% from 9.8% 12 months back.

Analysts said both had produced “solid” results.

“The broadcaster has historically tried to keep the level below 10% but clearly its recent decision to put up TV prices and limit retention discounts hasn’t gone down well. Netflix, Amazon and BT are now serious competitors”.

Rival BT snapped up the Champions League football coverage from Sky and ITV past year, paying £897 million for live coverage over three seasons.

BT Sport reported concern in March that viewing figures for the Champions League were worryingly low, just 200,000 watched it live.

Sky is the home of “Game of Thrones” in the UK.

“Each of our markets is making very strong progress”, Darroch said.

The Board of Sky plc has proposed a final dividend of 20.95 pence per share, taking the total dividend payable in respect of the financial year to 33.50 pence per share.

Mr Darroch said it is working to give consumers “more and more reasons” to choose Sky and is aiming to be the best customer-led entertainment and communications company in the world.

Advertisement

Shares rose just under 7% to 949.5p.

Tyrion Lannister Game of Thrones