Member Article

'Excellent' third quarter puts Sky growth at 11 year high

Strong customer demand coupled with record growth in Europe enabled broadcasting giant Sky to post a successful 20% increase in operating profit.

Excellent financial results include a 5% increase in group revenue to £8,453m as well as 20% increase in operating profit to £1,025m.

Sky enjoyed an excellent third quarter with 242,000 new customer additions, almost 70% more than last year. Moreover, the company had over one million new paid-for subscriptions products.

Sky third quarter growth was its highest in 11 years in the UK and Ireland, whilst the company can also report record growth rates in Germany and Austria. In addition, the quarter also saw Italy’s best performance for three years showing the success enjoyed by Sky in mainland Europe.

Jeremy Darroch, Group Chief Executive, said: “We have delivered an excellent third quarter as customers across the enlarged Sky group respond to the quality and breadth of what we offer.

“In all, we attracted almost 70% more new customers than the prior year and over one million new products. By continuing the strong operating momentum of the first half, we have grown revenues by 5% and operating profit by 20% over the nine months.

“The UK and Ireland delivered a stand-out performance, reporting both the highest customer growth and lowest churn for eleven years. We took share in broadband and grew strongly in TV as our dual-brand strategy with NOW TV and Sky continues to deliver.

“At the same time, Germany enjoyed another record quarter of growth and Italy posted its best Q3 customer growth in three years. We’ve also delivered significantly increased customer loyalty in each of our businesses.

“We are particularly excited by our progress in original drama. Fortitude debuted as the most successful drama ever on Sky Atlantic in the UK, 1992 opened as our most successful original scripted series in Italy, while Germany took its first steps in international co-production with 100 Code.

“As these results demonstrate, our teams are working well together right across the new Sky. Five months in, our integration plans are progressing well and we are well positioned for the expanded growth opportunity ahead.”