Sky Deutschland, the German pay-TV group, is coming closer to breaking even after posting full-year 2012 results showing its losses declined sharply – largely because of strong subscriber growth.
Sky Deutschland said the company expects a full-year operating loss of €48 million – €58 million. That compares to a €155 million operating loss in 2011.
Key to the company’s improved performance has been the slow but steady growth in subscriber figures. Sky Deutschland now boasts 3.36 million subscribers, an increase of 11.7 per cent over the full year.
Sky Deutschland also said it would issue another 20.4 million new shares to existing shareholders which will raise up to €91 million in capital for the group. The issue will allow existing shareholder to buy up new Sky Deutschland stock at the ratio of one share for every 42 shares already held.
News Adelaide Holdings, the News Corp. subsidiary that after a recent agreement controls 54.5 percent of Sky Deutschland, said it will exercise all its subscription rights to further boost its stake in the company.