bassethound
27-01-11, 21:42
Sky has reported a 26% growth in operating profits in the second half of 2010, as the firm sailed past its long-term goal of 10m subscribers.
In financial results for the three months to December 31, Sky enjoyed its fastest broadband growth for two-and-a-half years, adding 204,000 net new broadband subscribers, bringing its total base to just over 3m. The firm also pulled in 187,000 new telephony customers, taking its landline service to 2.75m.
The satellite broadcaster attracted 343,000 net new Sky+ HD television subscribers over the quarter, bringing its total HD base to 3.5m. Overall, Sky attracted 140,000 net new customers, taking its total base to 10.09 million. The firm said that 2.4 million of its subscribers now take a "triple play" service of TV, broadband and telephony.
In the six months to December 31, Sky's revenue increased 15% to £3.2 billion, with adjusted operating profit up 26% year-on-year to £520m. Adjusted earnings before interest, tax, depreciation and amortisation rose 19% to £677m. The rate of churn (customers leaving Sky) was 9.5% and average revenue per user grew to £541 from £492 in the previous year.
Buoyed by its strong financial performance, Sky confirmed plans to open a new customer service facility in Sheffield as part of an expansion of its network of contact centres, which will result in around 1,500 new jobs around the UK.
Sky chief executive Jeremy Darroch celebrated the company's "outstanding performance" and noted the "strong demand" across all Sky product lines. He said that Sky remains "cautious" about the economic outlook for this year, but is confident in the "long term opportunity" for the business.
Darroch added: "We intend to maintain our consistent strategy of pursuing both growth and returns, by balancing sensible investment with a strong emphasis on operational efficiency.
"In this context, we will focus on giving even more value and better service to customers in 2011. Next week, customers can look forward to the launch of Sky Atlantic, a premium channel featuring outstanding entertainment from the US and the UK, available to Sky TV customers at no additional charge."
Also in the results, Sky revealed that it has racked up costs of around £7m relating to News Corporation's bid to acquire the 61% of the company that it does not already own.
News Corp is currently in the process of offering the culture secretary Jeremy Hunt specific undertakings in order to counter media plurality concerns about the takeover. Possible options are thought to include increased independence of Sky News.
According to Sky, News Corp will "reimburse the company for costs incurred up to a maximum of £20m" if the takeover is not granted or "subject to a material remedy"
Sky has further announced the acquisition of the gross assets of wireless hotspot provider The Cloud for £17.1 million. It will use The Cloud's network of 5,000 public Wi-Fi locations across the UK for the launch of Sky Anywhere later in the year, a new service enabling Sky TV customers to enjoy pay-TV programmes wherever they choose.
In financial results for the three months to December 31, Sky enjoyed its fastest broadband growth for two-and-a-half years, adding 204,000 net new broadband subscribers, bringing its total base to just over 3m. The firm also pulled in 187,000 new telephony customers, taking its landline service to 2.75m.
The satellite broadcaster attracted 343,000 net new Sky+ HD television subscribers over the quarter, bringing its total HD base to 3.5m. Overall, Sky attracted 140,000 net new customers, taking its total base to 10.09 million. The firm said that 2.4 million of its subscribers now take a "triple play" service of TV, broadband and telephony.
In the six months to December 31, Sky's revenue increased 15% to £3.2 billion, with adjusted operating profit up 26% year-on-year to £520m. Adjusted earnings before interest, tax, depreciation and amortisation rose 19% to £677m. The rate of churn (customers leaving Sky) was 9.5% and average revenue per user grew to £541 from £492 in the previous year.
Buoyed by its strong financial performance, Sky confirmed plans to open a new customer service facility in Sheffield as part of an expansion of its network of contact centres, which will result in around 1,500 new jobs around the UK.
Sky chief executive Jeremy Darroch celebrated the company's "outstanding performance" and noted the "strong demand" across all Sky product lines. He said that Sky remains "cautious" about the economic outlook for this year, but is confident in the "long term opportunity" for the business.
Darroch added: "We intend to maintain our consistent strategy of pursuing both growth and returns, by balancing sensible investment with a strong emphasis on operational efficiency.
"In this context, we will focus on giving even more value and better service to customers in 2011. Next week, customers can look forward to the launch of Sky Atlantic, a premium channel featuring outstanding entertainment from the US and the UK, available to Sky TV customers at no additional charge."
Also in the results, Sky revealed that it has racked up costs of around £7m relating to News Corporation's bid to acquire the 61% of the company that it does not already own.
News Corp is currently in the process of offering the culture secretary Jeremy Hunt specific undertakings in order to counter media plurality concerns about the takeover. Possible options are thought to include increased independence of Sky News.
According to Sky, News Corp will "reimburse the company for costs incurred up to a maximum of £20m" if the takeover is not granted or "subject to a material remedy"
Sky has further announced the acquisition of the gross assets of wireless hotspot provider The Cloud for £17.1 million. It will use The Cloud's network of 5,000 public Wi-Fi locations across the UK for the launch of Sky Anywhere later in the year, a new service enabling Sky TV customers to enjoy pay-TV programmes wherever they choose.