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    UK ISP Sky Broadband Tops 5.75 Million Internet Subscribers

    This is a discussion on UK ISP Sky Broadband Tops 5.75 Million Internet Subscribers within the Sky news and announcements forums, part of the SkyUser Announcements category; UK ISP Sky Broadband Tops 5.75 Million Internet Subscribers - ISPreview UK Sky has today published the company’s latest results ...

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      UK ISP Sky Broadband Tops 5.75 Million Internet Subscribers

      UK ISP Sky Broadband Tops 5.75 Million Internet Subscribers - ISPreview UK
      Sky has today published the company’s latest results for Q3 2015, which reveals that their Sky Broadband division in the UK and Ireland added another +133,000 Internet subscribers in the quarter to total more than 5.75 million (up from the +96,000 added during Q2).

      It’s perhaps fair to say that Sky has had a busy few months, not least due to an on-going fight with BT over Ofcom’s Strategic Review (here) / Pay TV and the tentative launch of their new 940Mbps capable FTTP broadband network in the city of York (here). On top of that they’ve followed the other big ISPs by raising their prices, which is rarely a popular move (here).

      Never the less today’s results show that Sky are continuing to hold their own, although it’s normal to see an uptick in new subscriber additions during Q3 as the previous Q2 period often suffers a slump due to student movements (i.e. cancelling contracts as they move back home) and holiday periods.

      Jeremy Darroch, Sky’s Group CEO, said:

      We have made a strong start to the year with customers responding well to the quality and breadth of our content, products and services. As we continue to place customers right at the heart of our business, we are focused on offering the very best content at the same time as anticipating customers’ evolving needs, delivering the programmes that they love across multiple platforms and devices.

      This approach has delivered an excellent financial performance in the quarter, with further broad-based revenue growth of 6%, translating into a 10% increase in operating profit. This performance was driven by strong demand across the group.


      We added over 130,000 new customers in the quarter, up 7% on the previous year, which means that we’ve added almost a million new customers over the past twelve months, up 51% year on year. Our total product base now exceeds 54 million, and within this, broadband growth in the UK had a stand-out performance this quarter, up 77% year on year
      .”
      Going forward Sky will no doubt be keeping a watchful eye on the Strategic Review, which could have an impact on their business, and they also plan to launch a new consumer mobile service in the UK during 2016 via O2’s MVNO platform (here).

      Sadly Sky’s results, which earlier this year were consolidated and simplified into an incredibly vague form following the merger with Sky Italia (Italy) and Sky Deutschland (Germany), don’t give us a lot of detail. But we do learn that their UK Average Revenue Per User (ARPU) remains stuck at £47 per month and Churn was similarly unchanged at 9.8%.


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      Re: UK ISP Sky Broadband Tops 5.75 Million Internet Subscribers

      Another take:

      http://www.theguardian.com/media/201...ampions-league
      Sky shrugs off BT football fears but City warns over spiralling TV rights costs

      Pay-TV group reports 10% profits rise and best first-quarter UK customer growth for four years despite the launch of rival’s Champions League coverage

      Sky has boosted its profits and reduced the rate of customers leaving to rival services, shrugging off fears that BT’s poaching of the Champions League rights would hurt its performance.

      The pay-TV group increased total revenues by 6% to £2.8bn and profits by 10% to £375m year on year in the three months to the end of September.

      Crucially, Sky reduced its churn, the rate at which customers leave the business, to 9.8% – its lowest UK rate for the quarter in 11 years.

      Its UK and Ireland operation, which could have been hit by BT Sport airing the Champions League, added 77,000 new customers. This was 50% growth over the same period last year, the highest rate in four years.

      The company acknowledged that it had expected a “tough trading period” but said the overall performance of the business, including its German and Italian operations, was “excellent”.

      The UK business remains the powerhouse, reporting a 20% increase in operating profits to £358m in the quarter, helped by what the company said was a “strong focus on costs”.

      Sky’s German business reported revenue growth of 11% but a small operating loss of £8m, as a result of increased Bundesliga and Champions League costs. The business added 94,000 new customers.

      The Italian business saw revenues fall 4% and operating profit slide by 24% to £25m as 37,000 customers left the business.

      “Italy delivered a resilient performance against a challenging economic backdrop and the loss of the Champions League rights on a platform that is more sports-focused,” the company said.

      Ian Whittaker, an analyst at Liberum, said there are issues over Sky’s long-term profitability due to spiralling programming costs, especially sports such as Premier League.

      Average revenue per user, a metric that measures how profitable each customer is which is closely watched by analysts, remained flat at £47.

      “We still have concerns that Sky’s long-term profitability will never get to the heights to justify its valuation because of the pressures from increasing programming costs,” said Whittaker.

      “We see evidence of this as ARPU continues to flatline, with ARPU flat in UK and Germany and falling in Italy over the quarter. Cost rights inflation and the uncertainty of further spikes in the major costs such as the Premier League rights will continue to drag on the valuation as they continue to display an inability to pass this cost through to customers.”

      Sky group chief executive Jeremy Darroch said that overall it was a strong start to its new financial year.

      “As these results show, we are delivering against a clear set of plans across Europe, and are well positioned for the growth opportunities ahead,” he said.

      Sky also announced that it has renewed a new five year deal with Sanzar, the body representing New Zealand, Australia and South African rugby, that will include the Rugby Championship as well as tours by England, Ireland, Wales and Scotland down under.
      For the unedited results from Sky for the first quarter: https://corporate.sky.com/documents/...ember-2015.pdf
      Last edited by Scubbie; 21-10-15 at 04:24 PM. Reason: Added link

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      Re: UK ISP Sky Broadband Tops 5.75 Million Internet Subscribers

      ᴧ 'Sky shrugs off BT football fears but City warns over spiralling TV rights costs' taken from the Guardian.
      Not too sure they would be too happy, not referencing them.

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      Re: UK ISP Sky Broadband Tops 5.75 Million Internet Subscribers

      Thank you lettice. That was a slipup. I meant to include it and have amended the post.

      Sky Fibre Unlimited Pro: Connected at 80,000 kbps / 20,000 kbps
      Previous ADSL2+ Speed 19999 kbps 1153 kbps, Line Attenuation 17.5 db 6.9 db, Noise Margin 7.5 dB 8.7 dB
      Speedtest: 17.15MB/s 0.97Mb/s Ping 31 ms

     

     

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