Sky Italia in sight of 5m

Chris Forrester

At its current rate of subscriber growth Sky Italia will top 5m subscribers some time later this year. As we reported yesterday, Sky Italia unveiled its latest numbers (to March 31), and reported net subs growth of an impressive 232,000 gross additions, to 4.8m.

However, there was some downside to the core numbers. Currency rates helped the overall picture, but there was also growth in operating expenses, with increased marketing costs and higher charges for sports rights.

But one major factor in reduced profits – and higher churn – was government intervention. The current economic crisis saw Silvio Berlusconi’s government double the VAT rate in January, from 10% to 20%. While gross additions were up 25% for the quarter compared to the same time last year, the higher VAT rate saw increased churn – not massive, but likely to be around 12% this year.