Thursday 23 November 2017

Sky profits fall 20pc in UK and Ireland

A Sky Sports cameraman at work during the Manchester United v Chelsea game last Sunday
A Sky Sports cameraman at work during the Manchester United v Chelsea game last Sunday

Sean Duffy

Operating profit at the UK and Irish arm of TV provider Sky fell by 20pc in the first nine months of the company's financial year.

The company said that despite growth in revenue in the UK and Ireland, a foreign exchange impact had dented its balance sheet by £434m (€403m).

Operating profit in the region fell by £236m (€281m) in the first nine months of the year compared to the same period in 2016.

Sky said that its overall operating profit for the region had fallen to £918m (€852m) in the nine months to the end of March, down from £1,154m a year previously.

Revenues in the UK increased by 4pc over the period to £6.4bn (€5.9m).

However, advertising revenues in the first quarter of this year contracted by 3pc.

The company said it had made significant inroads on reducing operating costs, which was necessary due to "significantly higher programming costs".

Overall, the company closed the quarter with 4.9 million customers, up 363,000.

Group revenue rose by 11pc, or 5pc at constant currency rates. "It's been another strong quarter for Sky, despite this being our seasonally quietest period," said Sky CEO Jeremy Darroch.

"We have delivered strong revenue growth of 11pc and are on track financially with operating profit for the nine months exceeding £1bn," he added.

In December, it was announced that the company was to be purchased by 20th Century Fox. The deal is under review by the UK government.

Irish Independent

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