Sky adds profit but nets just 26,000 TV subs
October 19, 2011
In the quarter to September 30th BSkyB has posted revenue up 9 per cent to £1.66 billion (€1.89bn) and operating profit up 16 per cent year on year to £295 million. But while it added 77,000 net new customers in total and sold 683,000 additional ‘products’ the net of new pay-TV subs was just 26,000 against 96,000 for the period last year.
Jeremy Darroch, Chief Executive, commented: “We continue to deliver strong financial results and good growth in customers and products. In market conditions, our move to more broadly based growth and multiple products is serving us well. New customers are choosing Sky over other providers, existing customers are taking more from us and our financial performance is accelerating, with another quarter of double-digit growth in operating profit, EPS and free cash flow.”
“Looking ahead, the environment is likely to remain challenging as a result of the pressures facing consumers in the UK and Ireland. Our job is to give customers the quality and value they’re looking for, with a better choice of programmes, more innovation and peace of mind with a price freeze for 12 months.”
Sky says it is focussing on delivering value and more product to its existing base. On average each subscriber takes 2.5 products now (HD, multi-room, 3D, broadband, etc) compared to 2.3 a year ago. ARPU is now £535 against £510 a year ago and the price freeze initiative has staved off any recession induced churn with net churn (quarterly annualised) at 11.1 per cent against 11.2 per cent year on year.
Twenty-eight per cent of customers are now triple play, up from 23 per cent and total homes served is 10.231 million up on 9.956 million.