James Murdoch is to succeed Nicholas Ferguson as chairman of Sky. Ferguson, who has been chairman since 2012, joined as a non-executive director.
Murdoch has been a director of the company since February 2003. He’s been chairman once before, from 2007 to 2012, and was chief executive from November 2003 to 2007.
Martin Gilbert has been appointed as Deputy Chairman, with Andrew Sukawaty taking over his former role as Sky’s Senior Independent Director.
The move sparked speculation of a possible News takeover with the share price beginning to climb. Ferguson said it was difficult to find a time to step down: “We have completed major international acquisitions in Germany and Italy; they are running to plan and we have first-class management in place. Sky continues to grow impressively, to innovate with wonderful products and to serve its customers to the highest standard.
Murdoch’s Return of the Disgraced: first he re-appoints Rebekah Brooks as CEO News UK, now son James is back as Chairman of Sky.
— Andrew Neil (@afneil) January 29, 2016
The announcement came following the release of Sky’s six-month financial results. Operating profits increased to £747 million on revenues up 5% of £5,718 million.
UK and Ireland produced its strongest Q2 performance in 10 years, adding 778,000 new paid for products, with 778,000 new paid for products and taking the installed product base to over 39 million. 146,000 TV customers were added in the quarter, while church was down 30 basis points year on year to 10.2%, the lowest Q2 level for four years. Sky UK has 12,283,000 customers out of a total of 21,477,000.
Germany and Austria has 4,494,000 customers and Italy 4,700,000.
Italy managed to increase customers by 12,000 amid heavy discounting across the market following Sky’s loss of Champions League rights.
Significantly, Sky said functionality contained in the new Sky Q box would be made available through a new Sky+HD box being released in Germany and Italy.
