Sky ad revenue up 7%

Sky Q: chief executive Jeremy Darroch said broadcaster is 'pleased' with early response to new service
Sky Q: chief executive Jeremy Darroch said broadcaster is 'pleased' with early response to new service

Sky's operating profit was up 11.6 per cent for the nine months to the end of March 2016 to £1.14 billion, as ad revenue climbed 7 per cent.

The pay TV broadcaster’s group revenue grew by 4.8 per cent year on year to £8.72 billion, with UK and Ireland revenue up 5.7 per cent to £6.16 billion.

The company, which also operates in Germany, Italy and Austria, said it was "pleased" with the early response to Sky Q, its premium satellite TV and internet service launched in February.

Operating profit was a record for Sky for the first nine months of a financial year, up 11.6 per cent to £1.14 billion.

Sky said its advertising revenues, up 7 per cent, were boosted by the "continued success of Sky Adsmart in the UK, as well as the "strong performance" of TV8 in Italy and subscriber growth in Germany.

There were 177,000 new customers joining Sky between January and March and, for the first time, Sky has sold over 40 million products in the UK and Ireland.

But the churn rate – the number of people closing subscriptions – was up by around 10,000 customers compared to the same period last year (10.7 per cent in Q3 2016, compared to 10.1 per cent in Q3 2015). Sky said this was because of its decision to limit discounts.

Jeremy Darroch, the group chief executive at Sky, said: "We want to offer customers the very best TV experience, whenever and however they want to watch. With the launch of Sky Q in February, we now have three outstanding products to meet all our customers’ needs.

"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."

Yesterday Campaign reported Sky Media, the company’s ad sales operation, was moving offices from its Victoria base in central London to Sky’s Osterley campus.

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