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    Sky 1st Quarter 2016 results

    This is a discussion on Sky 1st Quarter 2016 results within the Sky news and announcements forums, part of the SkyUser Announcements category; Sky posted a 13 percent increase in sales in the latest quarter Sky benefited from a decline by the pound ...

    1. #1
      lettice's Avatar
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      Sky 1st Quarter 2016 results

      Sky posted a 13 percent increase in sales in the latest quarter
      Sky benefited from a decline by the pound since the U.K. voted to leave the European Union in June.

      The results for the first time do not disclose customer attrition rates.
      Sky said July 28 that it will no longer provide such indicators. Known as churn, the 12-month rolling rate at which customers leave.

      Business on track with a strong start to the year
      • Group revenue up 7% to 3.1 billion, with like-for-like revenue up over 5%
      • Good growth in all markets
      • Over 100,000 new customers joined Sky, including Italy’s highest Q1 customer growth in four years
      • Strong start to the year on cost efficiency – operating costs down 2% on prior year
      • Business on track against full year expectations

      UK & Ireland
      Revenues were up 5% in UK & Ireland driven by customer demand for our extended range of products
      and services, the benefit of our June TV price rise, offset by weakness in the UK television advertising
      market. Our own advertising revenues were down 3%, slightly better than the overall market despite
      a quiet quarter on screen and our competitors benefitting from UEFA Euro 2016 and the Paralympics.
      We saw particularly good growth in our transactional revenues which were up by a third, reflecting
      strong sales in Sky Store and good growth in NOW TV sports passes.
      We were pleased that our superior customer service was recognised by Ofcom’s quarterly report for
      the three months to June 2016, with us leading the market in every single category. The other
      highlights from the quarter include:
      • Launch of UK’s most comprehensive Ultra HD service
      • Start of our biggest Premier League season yet, including Friday evening matches for the first time
      • Successful Sky Cinema campaign, driving movies consumption up 8% year on year
      • Launch of new channel, Sky Sports Mix, viewed by nearly three million households to date
      • Making our premium service, Sky Q, even better with launch of innovative new features
      • Launched industry first pay lite, contract-free, TV and broadband proposition – NOW TV Combo
      • Addition of Box Sets to Sky Store Buy & Keep service
      • Sky Kids app adding extra value for families, with total kids downloads up over 70% year-on-year
      • Introduction of innovative new Sky VR app, free to everyone

      A key focus during the period was our upcoming launch of Sky Mobile, with a number of final readiness
      milestones achieved including successfully completing our first live calls, SMS and data sessions,
      provisioning our own SIMs, and concluding international roaming agreements.


      Group
      Group revenues for the quarter increased 13% to 3,148 million, with our Euro revenues benefitting
      from the stronger currency. Revenues on a constant currency basis were up 7%, with good growth
      across all territories and categories, and up 5% excluding the benefit of the sub-licence of the Rio
      Olympic rights in Italy. In Germany & Austria revenue was up 9%, driven by increased demand from our
      growing customer base; the UK & Ireland grew by 5%, while Italy delivered a revenue growth of 13%
      including the sale of the Olympic rights – a like-for-like increase of 4%. Overall, financially we had a
      strong quarter and we’re on track for our full year expectations.

      https://corporate.sky.com/documents/...ss_release.pdf
      Last edited by lettice; 13-10-16 at 08:54 AM.

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      Re: Sky 1st Quarter 2016 results

      Sky said July 28 that it will no longer provide such indicators. Known as churn
      LOL nothing like a company hiding bad info is there! Apparently reading other sources the churn rate at Sky is increasing which is never a good thing for a company.

    5. #3
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      Re: Sky 1st Quarter 2016 results

      Quote Originally Posted by James_Mitchell View Post
      LOL nothing like a company hiding bad info is there! Apparently reading other sources the churn rate at Sky is increasing which is never a good thing for a company.
      Actually it was mentioned last year that with the way the industry had taken on triple play and sky now having a larger mix of products with customers, like some having now tv and sky+/skyq and switching more regularly between the two, that the churn rate was not what it used to be. So it really was not as simple as it was before.
      But they will still have a rate for their half yearly and yearly results, just not every quarter for this more complicated market.

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      Re: Sky 1st Quarter 2016 results

      Sky's churn rate has typically been around 10%.

      I can't recall the specific value but it has been mentioned in previous reports.

      Personally I think that figure is too high, but I think it reflects a number of factors which include competition, enticements for new customers and a lack of enticement for existing customers.

      Of course I could be wrong and this is just my own opinion.

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      Re: Sky 1st Quarter 2016 results

      Churn rate, when applied to a customer base, refers to the proportion of contractual customers or subscribers who leave a supplier during a given time period.
      It can be seen as a possible indicator of customer dissatisfaction, cheaper and/or better offers from the competition, more successful sales and/or marketing by the competition, or reasons having to do with the customer life cycle.

      Jeremy Darroch, Sky’s chief executive commented on it from earlier in the year to a lot of the press;

      He said he was not concerned by the rise in churn, arguing it has become a less important measure of performance as the company has expanded internationally and into services such as broadband and its Netflix rival Now TV.
      “I did feel at the end of last year that the UK market was pretty promotional and we’ve rowed back off that,” said Mr Darroch. “We’ll see a bit more of that in the fourth quarter and then we’ll be through that.

      “I’m very happy with where we are with churn but it’s only one part of the mix. I think it’s less important as a metric than where it was six or seven years ago.”
      The more important metric now is the APRU
      Average Revenue Per User is the amount of revenue each of your active customers (on average) contributes. For sky that is taking on more cost or extra packages.

      These now also encompasses in a broader sense not just physical services, but using mysky, downloading sky apps and turning on marketing emails, adsense etc.
      As you see the traditional sense of these metrics has changed a lot recently and much more complex than they used to be.

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      Re: Sky 1st Quarter 2016 results

      Her is the upcoming highlights for the next three months on Sky.
      A selection of new programmes, movies and sporting events.

      https://corporate.sky.com/documents/...ingcontent.pdf

     

     

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