Sky revenue and earnings ahead as customer numbers grow

Subscription broadcaster Sky posted results for the year to 30 June on Thursday morning, reporting a 7% increase in revenue to £11.965bn, with adjusted operating profit up 12% to £1.558bn.

The FTSE 100 firm said adjusted earnings per share rose 13% during the period to 63.1p, and declared its 12th consecutive year of dividend growth to 33.5p.

During the year, Sky gained 808,000 customers and sold 3.3 million new products.

On a statutory basis, revenue rose 20%, operating profit improved 1% to £977m and earnings per share were 39p.

“With revenue up 7% and profits up 12%, it's been another excellent year for Sky,” said group chief executive Jeremy Darroch.

“We have broadened our business and expanded into new consumer segments, applying our proven strategy across the group.”

Darroch said the group is leveraging the many opportunities of scale; sharing resources, insights, expertise and innovation.

“We are investing in a broad range of world class entertainment in every market, distributed across an unrivalled choice of market-leading platforms and supported by excellent service, because these are the things that really matter to customers.”

Sky’s board boasted strong progress across its markets in the results, with the company passing £8bn in revenue in the UK and Ireland for the first time by expanding its product range, including its new premium Sky Q product.

“In Germany and Austria, we have broadened our TV offering to attract more customers,” Darroch explained.

“Today we are announcing the launch of Sky 1 which combines with our new Sky Arts channel, Sky Atlantic and increased on demand content to create a compelling entertainment portfolio.

“We have also ensured that Sky remains the undisputed home of the Bundesliga until 2021,” Darroch added.

The board said Sky’s business in Italy is outperforming a competitive market, delivering programmes which “capture the public's imagination” such as Gomorrah, X Factor and Moto GP across a growing choice of platforms.

It claimed the approach is working, with the Italian customer base returning to growth for the first time in five years.

“Our focus on operating efficiently and effectively in all our markets has enabled us to further reduce our costs as a percentage of sales, providing more fuel to grow profits and to invest where it counts - on screen and in our products and services,” Darroch explained.

He said the company’s “deep insights” into the needs of customers, along with its investments in programmes and technology, strong relationships with partners and its desire to embrace change means that it continues to “better serve” its customers, and grow the business.

“Our ambition is to be the best customer-led entertainment and communications company in the world, delivering long term benefits for all our shareholders.”