Sky Revenues Hit $12.4 Billion in Nine Months to March

A'Sky remote control

Sky has already co-produced drama series with HBO

EBITDA was down six percent to £1.5 billion and operating profit fell by 11 percent to £1 billion due to expenditure on the likes of Premier League football rights and the launch of Sky Mobile.

The announcement comes as Sky reported an 11% year-on-year hike in revenues to £9.6B ($12.4B) for the nine months ending March 31.

Figures showed that an extra 338,000 subscribers have signed up to Sky services in the United Kingdom over the previous year, helping United Kingdom revenues go up by four per cent to £6.4 million.

Revenue climbed to GBP9.64 billion from GBP9.15 billion, as core subscription revenue grew by 4% to GBP8.13 billion.

Adding to higher programming costs was the "tougher advertising markets" in the United Kingdom and Italy since the turn of the year.

"With Sky set to be acquired by 21st Century Fox, today's results are a bit of a side show, though perhaps that's a good thing because the numbers represent a little bit a wobble", said Laith Khalaf, senior analyst at stockbroker Hargreaves Lansdown.

Sky said that, whilst early days, it was pleased with the initial response to its entry into the United Kingdom mobile market.

Sky has added 769,000 new customers in the last nine months, with 100,000 new customers in the third quarter.

Leading pay TV players Sky and HBO are joining forces to create a development slate of high-end dramas that will be worth around US$250 million.

The firm has also announced a virtual reality programme featuring Sir David Attenborough and the Natural History Museum.

Outside of the United Kingdom, revenue and profits in the company's newer markets of Germany and Italy delivered a strong performance for the period, with Sky signaling a positive outlook for the final quarter of its fiscal year and further ahead. "Despite the broader consumer environment remaining uncertain, we continue to deliver on our strategy and are on track for the full year".

Elsewhere Sky noted that its takeover by USA media group 21st Century Fox Inc was cleared by the European Commission earlier this month.

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