News Corp’s Sky Italia has reported an annual fall in operating income of $52 million (€40.61m), putting the second quarter figure to December 31, 2008 at $10m.
Although increased subscriptions brought in an additional 100,000 subscribers on the quarter, the local currency revenue improvement came as revenue recognition was required on Sky Italia’s ever-increasing portfolio of live football, cancelling out the 6% growth in local currency. Now that football is on Sky Italia screens across all 12 months, rather than the 10 previous, revenues have to be recognised throughout the year.
At the end of the period Sky Italia had 4.7 million subscribers, an increase of 322,000 over the past 12 months.
Separately, Fox International Channels recorded a 25% increase in profits on the back of increased advertising and distribution in Latin America and Europe.