Thursday 14 November 2019

Operating profit at UK and Ireland arm of Sky down by 11pc

A Sky poster is erected by a worker in Birmingham
A Sky poster is erected by a worker in Birmingham

Sean Duffy

Operating profit at the UK and Ireland arm of TV provider Sky fell by £136m(€162m) in the first nine months of the company's financial year.

Sky announced that its overall operating profit for the region had fallen to £918m in the nine months to the end of March, down from £1,154m a year previously- a fall of 11pc.

The company said that despite growth in revenue in the UK and Ireland, a currency exchange impact for the region had caused a £434m hit to its balance sheet.

Sky said that revenues in the UK had increased by 4pc over the period to £6.4bn. The company said that advertising revenues in the first quarter of this year were down by 3pc.

It 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 on the prior year and with growth of 73,000 new customers in the quarter.

Overall, 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.

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