Sky Italia sheds 42,000 subs
August 9, 2012
Sky Italia has reported a loss 42,000 customers in Q2 2012, and a loss 71,000 customers in 12 months, to end its fiscal year with a total 4.9 million subscribers. The News Corp company reported quarterly operating profit of $89 million, down from $145 million a year ago.
Over the full year, operating profit was up 9 per cent to $254 million, due to lower programming costs after the World Cup the previous year.
“This decrease reflects the challenging economic environment in Italy as directly impacting gross subscriber additions in churn,” News Corp chief financial officer David DeVoe told investors. “Given the relatively low pay TV penetration in Italy and Sky’s strong competitive positioning, we continue to have complete confidence in the long-term growth prospects for this business. However, in the short-term, weak consumer confidence and consumption behaviour is likely to sustain the current difficult trading conditions in Italy.”
Chief operating officer Chase Carey added: “The one business that is facing real economic headwinds and will adversely impact 2013 results is Italy. We’re focused on taking steps to position Sky Italia for tough economic times, which will enable the business to resume its growth as we move towards 2014.”