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    Sky Quarter 3 results

    This is a discussion on Sky Quarter 3 results within the Sky news and announcements forums, part of the SkyUser Announcements category; Sky has released a their 3rd quarter results today. On the whole things look very favourable. Delivering the very best ...

    1. #1
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      Sky Quarter 3 results

      Sky has released a their 3rd quarter results today. On the whole things look very favourable.

      Delivering the very best TV experience and broadest choice for customers, across multiple platforms

      • Securing more of the best content from around the world; pan-European movie deal with Sony
      • Extending our leadership in sport; new deals including Formula 1 and UEFA Euro 2016
      • Delivering market-leading innovation; Sky Q and Sky Kids app launched in the UK
      • Leveraging our connected home investments further; Sky Box Sets now available in all markets


      Strong demand from new customers; existing customers continuing to take more from Sky

      • 177,000 new customers joined in Q3; 686,000 more products in Sky homes
      • UK surpasses over 40 million products in the quarter


      Excellent financial results

      • 5% increase in group revenue to 8,715million
      • 2% increase in operating profit to 1,143million
      However the 'chrun' or the number of customers who leave Sky, being replaced by new customers, is still quite high.

      Group performance (Q3)
      (000s) As of 31/3/2016 As of 31/3/2015
      Products 56,552 52,954
      Retail Customers 21,654 20,848
      Churn (%)
      UK & Ireland 10.7% 10.1%
      Germany & Austria 9.8% 8.5%
      Italy 11.0% 9.7%

      Sky Q has seen a large number of new business already.

      In the UK and Ireland we had a good quarter of growth, following a strong first half. We focused our marketing on building brand awareness for Sky Q, ahead of the first installations towards the end of the quarter. In Q3 we added 70,000 new retail customers and 438,000 new products, including 46,000 new broadband additions. Churn for the quarter was 10.7%, reflecting our decision to limit discounts; we believe this impacts the quarter by around 10,000 additional customers churning. Revenue was up 6% to 6,161million (2015: 5,824million) which, together with our strong focus on operating efficiency, delivered a 15% increase in operating profit to 1,154million (2015: 1,004 million).
      The intention will be to roll out Sky Q to Germany next year.

      Sky is continuing to merge the three different markets into one. The Formula One coverage is now handled by one single team. This should mean improved coverage and perhaps better apps and other features coming to the screen and tablets.

      The Sky Atlantic & Sky Arts branding have all been made the same to help with future marketing campaigns.

      Sky Cinema has moved the 'playout' section for Germany & Austria into Milan's shared broadcast facility.

      This is on top of Sky moving the whole of Sky Arts into Milan last year. They intend to continue amalgamating their operations over the next year or so.

      For the full unaudited report:

      https://corporate.sky.com/rns.aspx?P...6562523239c052
      https://corporate.sky.com/media-cent..._31_march_2016

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      Re: Sky Quarter 3 results

      Was really hoping there would be some mention of the Sky Mobile launch but still nothing

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      Re: Sky Quarter 3 results

      I'm not expecting that until later this year.

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      Re: Sky Quarter 3 results

      Found an article from the telegraph about Sky's share prices after the Q3 results that has a reassuring mention about Sky Mobile at the bottom of it
      Sky shares slide as focus on more expensive packages costs customer growth

      Sky is now preparing to launch its UK mobile service later this year based on the O2 network.

      Hutchison, owner of the Three network, is attempting to buy O2 from Telefonica for 10.25bn. However the deal has run into opposition in Brussels and could be rejected.

      Mr Darroch said Sky’s plans would be unaffected if the O2 deal becomes mired in legal wrangling. In a call with analysts he indicated that, in line with the company's longstanding aversion to infrastructure ownership, Sky was unlikely to bid for O2 if the deal between Hutchison and Telefonica falls apart.
      Good to see that all this Three/o2 uncertainty hopefully wont delay Sky's entry into mobile, i guess Sky would prefer the new deal being offered by Hutchinson if the merger goes through but if not would still have the original deal with o2

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      Re: Sky Quarter 3 results

      I'm sure Sky Mobile will be quite successful when it arrives, but in terms of joining the quad play party, Sky has been woefully slow off the mark.

      The situation with the Three/O2 deal just complicates and slows down matters. If it falls through, I suspect it could delay a launch for even longer while they have to find another partner or make another deal.

      I still think that, whatever Sky Mobile turns out to be, it will be too little and too late.
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      Re: Sky Quarter 3 results

      I also think Sky have left it way too late now launching a mobile service. The churn rates in the mobile industry are and always has been quite low as people tend to stick with what they know and have always had when it comes to mobiles.

      Unless Sky offer something that is spectacularly different to what is already available, I certainly would not consider switching mobile providers as EE currently offers me everything I need for my mobile. EE are also light years ahead ahead of O2 in terms of their network here as well, another reason not to switch.

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      Re: Sky Quarter 3 results

      Cant say that ee vodafone and o2 are any different really.
      But do find that work colleagues who have o2, do find it the poorest in more remote countryside areas, whereas ee and Vodafone just seems to work for everyone.
      As for three that's just useless round my way so everybody says and a few I know who do have it further afield always seem to have a weak or no signal most of the time. Why they bother with it I never know.
      Always thought the three brand is very weak and not one I really understand.
      Do remember we all bought the three data dongles for our pcs many moons ago, they were hopeless. Of course not needed now with 3g/4g so good and phones and tablets just replacing all that on the road.

      Do agree, unless sky launch their own network do not see the point of hanging off one of the big three.
      Unless they offer it free to all tv customers, do not really see the incentive.

      Like you say, I've been with vodafone for a few decades for personal use now on payg (and vodafone for business use for even longer), rarely if ever get a loss of signal, only weak spot seems to be in some parts of Devon (that being places you would expect to get a signal), but that's the same for everyone.
      4g coverage is excellent here.

      Do think if sky do anything they should do something around the sky router or sky broadband and create a wifi hotspot or wifi calling network, be a much better idea.
      Last edited by lettice; 22-04-16 at 04:25 PM.

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      Re: Sky Quarter 3 results

      Personally I'd love to see the Three and O2 merger go ahead. This would give the investment opportunity that T-Mobile and Orange had when they merged, but wish to deny to Three and O2.

      From what I read about the merger in Ireland O2 had terrible coverage. Generally speaking Three's transmitters were upgraded to provide 2G coverage for O2 customers, but the brands are both still present.

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