Sky nine-month revenue up 5%, core earnings 14% higher

Broadcaster Sky, which is currently the subject of a bidding war, posted a 5% jump in nine-month like-for-like revenues on Thursday as core earnings rose 14%, and the company said it remains on track for the full year.

In the nine months to 31 March 2018, LFL revenue grew to £10.1bn, while established business earnings before interest, tax, depreciation and amortisation came in at £1.8bn and statutory operating profit was up 22% to £857m.

Revenue in the UK and Ireland was up 4% in the nine-month period, while established business EBITDA was 14% higher. Sky said it had a strong quarter, making "significant" progress on its future growth plans, including the successful renewal of its Premier League rights from 2019 to 2022 at 16% less cost per game, and the conclusion of new partnerships with both Netflix and Spotify.

Meanwhile, customer numbers in the third quarter were up by 38,000 to 22.9m.

Chief executive Jeremy Darroch said: "Against the back drop of a challenging consumer environment, this performance reflects the continual improvement in our broad set of products and services and our focus on providing great value every single day - something recognised by customers now taking over 62m subscription products from us and our services reaching over 120m people across Europe.

"Today's results not only demonstrate continued strong execution but also extend our position as Europe's leading direct-to-consumer media business.

"Looking ahead, we have the right strategy and abilities in place to provide customers with the best content, products and service. Whilst we expect the consumer environment to remain challenging, the business is in good shape and we remain on track for the full year."

Sky is currently waiting on the outcome of an investigation by UK authorities into 21st Century Fox’s proposal to buy the rest of the company it does not already own.