Sky Deutschland still struggling
August 14, 2009
Sky Deutschland (formerly Premiere) lost 7,000 subscribers during the second quarter of the year and reported losses of over E360m. The pay-TV operator ended June with 2.364 subs against 2.371 at the end of the previous quarter.
While the operator attracted 23,000 monthly contract customers, it lost 30,000 Flex subscribers during that time, overall churn remained stubbornly high at 22%.
The operator reported a net loss of E365.8m, much of which it down to writing off the value of the Premiere trademark for E253.9m. Revenues for the second quarter were down E230.6m from E252.1m while EBIDTA was negative E63.4m compared with positive E11.6m a year earlier. ARPU increased to E25.20 during the quarter from E24.85 the previous quarter.
CEO Mark Williams remains positive: "We are very pleased with progress since the successful launch of Sky on 4 July, with awareness of the Sky brand very quickly exceeding 50%. In these first few weeks, we have seen a very positive reaction from both our existing customers upgrading to the new expanded range of Sky services, including our new comprehensive HD offer, as well as a strong increase in the rate of subscriber additions."