Sky has reported another strong quarter with 177,000 new customers signing for the company’s products in the quarter to March 31, 2016.
This contributed to another 686,000 products in Sky homes and the UK passing 40 million products.
Group revenues increased by 5% to £8,715 million, while operating profit climbed by 12% to £1,143 million. In Germany revenues of £1,079 million delivered the first-ever third financial quarter profit in the territory. Nine-month operating loss was £16 million, a £7 million improvement year on year.
“It’s been another strong quarter for Sky. Our strategy to broaden our business, expanding into new markets and customer segments, has delivered further excellent financial results with revenue up 5% and a double digit growth in profit,” said Jeremy Darroch, Group Chief Executive. “We are pleased with the early response to Sky Q, as we focus on establishing this premium product in its first market. Our approach to the connected home continues to engage customers; almost 11 million Sky households have now connected to enjoy our on demand services including Sky Box Sets, which recently launched in both Germany and Italy.”
Darroch said Sky Q had made a better start than HD. He told investors initial installations had gone well and that marketing would move more towards features over the next quarter.
Churn for the quarter was 10.7%, reflecting the broadcaster’s decision to limit discounting. There were also 46,000 new broadband additions.
In Germany and Austria there was a strong customer response to a new Entertainment pack, offering more channels and full access to the on demand service at a higher €21.99 price point, against a lower tier of €16.99. Over 40% of customers opting for the pack, adding almost €2 per month in ARPU.
Italy, which in recent years has suffered from subscriber erosion, added 34,000 new retail customers and 49,000 new products, it’s highest customer growth in four years. During March the focus has been on the launch of Sky Box Sets.
