Sky grows revenue and profit as it eyes up European expansion
Sky shares shot up in early trading this morning after the company revealed it grew revenue and profit on an adjusted basis in the year to 30 June.
The figures
The broadcaster reported a seven per cent increase in adjusted revenue, up to £11.97bn from £11.28bn the year before.
Operating profit went up 12 per cent to hit £1.56bn, compared with £1.4bn in 2015.
Adjusted earnings per share (EPS) grew by 13 per cent to 63.1p from 56p. Statutory ESP, however, dropped by 51 per cent to 39p, down from 79.1p one year earlier.
The company grew customer numbers to 25.88m from 25.18m in 2015.
Churn – the percentage of customers leaving – in Sky's biggest UK and Ireland market was 11.2 per cent. The group said this reflected the fact that it now has "more than one million broadband-only customers, who have a higher propensity to switch providers, in line with the industry norm".
Shares in the company went up five per cent in early trading.
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Why it's interesting
In the wake of the recent Brexit vote in the UK, Sky today revealed a focus on European expansion in its future plans. The group plans to expand its streaming services across the continent, and is launching several new offerings in Italy and Germany. The firm is also entering the virtual reality arena, with an app that "cements (its) leadership in innovative, immersive content".
What Sky said
"It’s been another excellent year for Sky," said chief exec Jeremy Darroch. "We have broadened our business and expanded into new consumer segments, applying our proven strategy across the group.
“The group is leveraging the many opportunities of scale; sharing resources, insights, expertise and innovation. We are investing in a broad range of world class entertainment in every market, distributed across an unrivalled choice of market-leading platforms and supported by excellent service, because these are the things that really matter to customers."
In short
The broadcaster grew customer numbers in a competitive market – and it's determined to keep building its market share with a focus on European expansion in the coming months.