Sky posts record results as NOW TV launches connected TV dongle
Joseph O'Halloran | 26-07-2013
Defying totally any inclement economic circumstances, UK pay-TV behemoth BSkyB has posted record-breaking results for the 12 months ended 30 June 2013.
As it does so, and indicating strongly where the next area of revenue growth is going to be, Sky also revealed that its NOW TV over-the-top service has signed up 50,000 customers and will launch a box designed to turn a standard set into a connected TV.
Looking at the financial year, Sky generated £7.235 billion in revenues a year on tear growth of 7%, driving a 9% growth in operating profit of £1.33 billion and 8% increase in EBITDA to £1.692 billion. Even though basic TV subs in the year grew modestly by 134,000 to 10.422 million, Sky’s record financial and operational performance came on the back of paid-for subscription product growth of 3.3 million to a total of 31.6 million.
During the year Sky was successful with new services, showing a 170% growth in Internet-connected Sky+HD set-top boxes to 2.7 million and 19% increase in Sky Go users to 3.3 million. There was also a five-fold increase in on-demand downloads and a 200% growth in Sky Store video rentals.
Commenting on the results, a rather pleased Sky chief executive, Jeremy Darroch, said: “We have had another very good year … there has been an excellent response from customers to our new services. We’ve seen an explosion in on-demand and mobile viewing as more people connect their Sky boxes to broadband and watch TV on laptops and mobile devices with Sky Go. Sky Go Extra, our new subscription service, has already attracted more than 150,000 customers in just five months… The benefits to our business are equally strong through take-up of higher-tier packages, expanded revenue opportunities and improved customer satisfaction. We see an exciting opportunity for future growth in this area and we intend to increase investment over the next year to accelerate growth and returns from these new services.”