As a bidding war intensifies around it, Sky posted strong financial results this week – with a 5% increase in like-for-like revenue to £13.6bn.
The broadcaster beat expectations for 4%, with pre-tax profit growing to £864m from £803m for the year end to June.
“It’s been an exceptional year,” said Jeremy Darroch, group chief executive, citing the half a million new customers that have joined Sky this year. The broadcaster now has 63 million products in customer’s homes.
“As a consequence, we have extended our leadership position as Europe’s largest direct-to-consumer media and entertainment business,” he said.
A complex bidding war between Comcast and the Rupert Murdoch-owned Fox is currently taking place for the British-owned Sky. Comcast, the owner of NBC Universal, is currently the highest bidder, valuing the group at £26bn
Meanwhile Fox, which already owns a 39% stake in Sky, has its bid supported by Disney – which Fox has agreed to sell its entertainment assets to, including its stake in Sky.
Sky is a hugely attractive offer in a world where Netflix and Amazon are scooping up subscribers. The business has 23 million pay-TV subscribers in five European countries and owns the rights to Premier League football and popular shows such as Games of Thrones.
“Our strong performance reflects the execution of our strategy over an extended period of time, driving sustained growth in revenue, profits and shareholder returns,” Darroch said.
“We do this by providing our customers more of the best content, world class innovation in products and services, combined with industry leading front-line service.”
Around half of Sky’s new subscribers were based in the UK and Ireland where advertising revenues performed well, up 6%.
Darroch said Sky’s ad targeting technology, Sky AdSmart, was helping to drive that growth.
