4th Feb 2015 07:30
LONDON (Alliance News) - Sky PLC Wednesday posted a big increase in pretax profit for its first half, boosted by a rise in revenue and exceptional gains from its sale of its stakes in ITV PLC and the National Geographic Channel, in its first results that incorporate its acquisitions of Sky Italia Srl and a majority stake in Sky Deutschland AG.
Sky posted a pretax profit of GBP1.21 billion for the half year to end-December, compared to GBP507 million a year before, on revenue of GBP4.30 billion compared to GBP3.67 billion. Profit was boosted by a GBP492 million gain from the sale of its 6.4% stake in ITV PLC and a GBP296 million gain from the sale of its stake in the National Geographic Channel.
On a constant currency basis, revenue rose to GBP5.60 billion compared to GBP5.34 billion a year before.
Analysts had expected the company to post revenue of GBP5.59 billion, according to consensus provided by the company.
Sky proposed an interim dividend of 12.30 pence, up from 12.00 pence a year before.
The results are Sky's first incorporating its acquisitions of Sky Italia and in Sky Deutschland. Sky said that Italy contributed GBP286 million in revenue and an operating profit of GBP15 million, and Germany contributed revenue of GBP180 million and an operating loss of GBP19 million.
The company said that both Sky Italia and Sky Deutschland performed well during the period, with Germany seeing its highest ever customer growth, and Italy seeing good customer growth in a challenging economic environment. It said that the integration of the businesses is progressing well, and it is "excited about the potential for the three businesses to be even stronger together."
The company said it had added 204,000 new customers in the UK, which it said is its highest growth in nine years. Analysts had expected customer growth of 124,000 in the UK. Within this, Sky posted 106,000 net broadband additions. Analysts had expected 99,000 broadband additions.
Rival BT Group PLC said last Friday that it had added 119,000 retail broadband customers during its third quarter, and 209,000 retail fibre customers, takings its customer base to over GBP2.7 million.
"Six months into the year, we've seen a good performance right across the new Sky. We have world-class capability within the expanded business and a strong set of plans that mean we are well placed to deliver growth and returns for shareholders," said Chief Executive Jeremy Darroch in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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