BSkyB Results 9 months to 31st March 2014
This is a discussion on BSkyB Results 9 months to 31st March 2014 within the Sky news and announcements forums, part of the SkyUser Announcements category; The results are out for Sky today: http://corporate.sky.com/documents/p...ss_release.pdf Strong quarter of growth 764,000 new paid-for subscription products in Q3: 2.4 ...
- 01-05-14, 07:56 AM #1
BSkyB Results 9 months to 31st March 2014
The results are out for Sky today:
Strong quarter of growth
- 764,000 new paid-for subscription products in Q3: 2.4 million in year to date
- 74,000 net new TV customers, more than double growth in Q3 last year
Connected TV services ahead of plan and delivering clear benefits
- Almost 50% of TV customers now connected
- On Demand usage tripled year on year
- 3.7 million Sky Go unique users, up 13% year on year
Financial performance on track
- Adjusted revenue1 of £5,666 million, up 7%
- Adjusted EBITDA of £1,223 million, down 2%
Jeremy Darroch, Chief Executive, commented:
“We have had a strong third quarter and continued to grow at an accelerated rate as customers respond to the quality and breadth of our offering. Nine months into our plans for the year, we have added almost a third more new paid-for subscription products than in the same period last year.
“Our investment in connected TV services is delivering results. Almost 50% of Sky homes are now connected and this is transforming their viewing experience: connected customers are watching more TV, they’re more loyal and they’re more likely to recommend Sky. Our expanded Box Sets service has been particularly popular with a fourfold increase in viewing of top titles like 24 and Game of Thrones.
“We are making good progress in developing new revenue streams. Our targeted advertising service, AdSmart, is attracting many new advertisers to Sky while our new Buy & Keep service in Sky Store opens up the DVD purchase marketplace for the first time.
“We’ve also made further strides to increase the range and quality of content across our platforms. Our new original dramas are working well; we’ve agreed 17 new sports rights deals since January; struck major new partnerships with HBO and ITV; and we’ve announced today the renewal of our movie output deal with Paramount giving us exclusive UK pay TV rights to hit titles like Noah and Anchorman 2. These continue to make Sky the number one destination for customers who want the best choice of TV.
“All this has enabled us to continue to deliver strong rates of top-line growth. Revenues increased by 7% in the first nine months compared with the same period last year. And, in a year of investment, adjusted EBITDA of £1.2 billion is a good result. We’re now more than three quarters of the way through our plan for the year and are on track to deliver returns in line with our expectations.”
A second new service, Sky AdSmart, launched in January. This is improving effectiveness for our existing advertiser clients and attracting new advertisers to TV by giving them the ability, for the first time, to run targeted campaigns across Sky and third party channels. To date, of the 100 advertisers that have run AdSmart campaigns, half are new to Sky and around 20% had never previously advertised on TV.We have also struck a new deal with Sony to make Sky Go and NOW TV available on Playstation®4 (PS4) from this summer.CORPORATE
Pay TV Case
In February, the Court of Appeal (CoA) upheld BT's appeal against the Competition Appeal Tribunal’s (CAT) August 2012 judgment in relation to the imposition by Ofcom of Wholesale Must Offer (WMO) obligations on Sky in respect of Sky Sports 1 and 2.
The CoA remitted the case back to the CAT for further consideration.
Ofcom review of WMO obligations
On 16 April, Ofcom announced a review of the WMO obligations imposed on Sky in relation to Sky Sports 1 and 2. Ofcom has noted that there have been a number of sector developments since 2010, which will need to be considered as part of its review. As yet Ofcom has not published any further details of its review.
- 01-05-14, 08:25 AM #2
Re: BSkyB Results 9 months to 31st March 2014
Reading further into this report the following information can also be seen:
- The rise in Sky's customer base for TV, Telephone and Broadband continues to grow, but slowly.
- Sky now has 5,197,000 Broadband customers
- Since the end of year results in 2013 Sky have installed their LLU kit in only one exchange and the figure has now remained as 2,355 for 6 months now
- The number of customers with a Sky+ HD STB continues to grow
- More people continue to connect their Sky+ HD and SkyHD STBs to the Internet
- Whilst income is up, so is expenditure resulting in lower profits
- Sky hasn't separated out the ADSL customers from the Fibre customers
Last edited by Scubbie; 04-05-14 at 10:19 AM. Reason: Corrected BB figures