Sky smashes expectations as HD fuels surge in demand
BSKYB is in touching distance of achieving 10m subscribers after announcing it made a net gain of 90,000 customers in the fourth quarter.
In a strong set of results the subscription TV giant announced that demand for its HD content has surged, with 429,000 users signing up in the last three months.
Adjusted revenue for the year was up 11 per cent to £5.9bn, with pre-tax profit almost trebling to £1.17bn compared to last year, when the company booked a loss on its ITV?stake. Adjusted operating profit – excluding a settlement with Electronic Data Systems – rose 10 per cent to £855m.
In a blow to BT, 20 per cent of Sky’s customers now subscribe to its “triple play” package of broadband, TV and phoneline – a 36 per cent hike year-on-year.
The broadcaster also announced a major tie-up with HBO, the US channel behind hit shows like The Wire, to screen its output in the UK.
Chief executive Jeremy Darroch said: “We’ve had another good quarter to bring our financial year to a strong close.”
The results do no favours for the broadcaster’s biggest shareholder News Corp, which is mulling a multi-billion-pound bid to take control of the firm. News Corp, which has a 39 per cent stake in the firm, last month saw a bid of 700p-a-share rejected.
This would have valued the firm at £7.8bn but analysts suggest it may take closer to 800p a share to tempt Sky’s board into recommending the offer.