Profits, revs rise as Sky makes strong start to fiscal year
| 16 October 2014
Just as it puts the final touches to its takeover of Sky Italia and Sky Deutschland, BSkyB has announced a robust start to its current financial year.
skysports on demandFor the first quarter ended 30 September 2014, the UK pay-TV platform reported a 6% year-on-year increase in revenue to £1.9 billion driving a profit of £316 million, an 11% increase compared with the same quarter a year ago. EBITDA was £417 million, up 6% yearly.
The quarter saw BSkyB add 760,000 new paid-for products, 8% more than the previous quarter, with the company maintaining its momentum in connected TV products. Indeed it revealed that had surpassed six million connected homes. In addition the Sky Store transactional VOD service more than doubled its revenues and the Sky Go Extra mobile TV service achieved a record quarter of growth. The company also disclosed that during the quarter it had trebled on a year-on-year basis transactions for its NOW TV over-the-top (OTT) offering while revenues from its AdSmart tailored advertising product were up 48% on the prior quarter.
"We have made a strong start to the year. After a year of investment, we are seeing the returns coming through with good top-line growth of 6% translating into an 11% increase in profits," said chief executive Jeremy Darroch commenting on BSkyB's Q1 results. "This strong financial performance was fuelled by continued operating momentum. We are seeing broad customer demand for our products whilst opening up new revenue opportunities. The benefits are clear as connected customers watch more TV, spend more with us and are more loyal ... Three months into the year, we are delivering against a clear strategy for growth in our existing business. At the same time, we are making good progress with our proposed acquisition of Sky Italia and a majority stake in Sky Deutschland."