Your forum username:
Do you already have an account?
Forgot your password?
  • Log in or Sign up


    Welcome to Sky User - The Unofficial Support Forum for everything Sky! - Proudly helping over 65k members.


    Advertisement

    Results 1 to 3 of 3

    Sky Full Year to 31 June 2017 financial results

    This is a discussion on Sky Full Year to 31 June 2017 financial results within the Sky news and announcements forums, part of the SkyUser Announcements category; Sky Full Year to 31 June 2017 financial results announced today 27th July 2017. STRONG YEAR DELIVERING ON OUR GROWTH ...

    1. #1
      lettice's Avatar
      lettice is online now Sky User Member
      Exchange: 0.4 mile away
      Broadband ISP: Sky Fibre Unlimited
      Router: ER110UK Sky Q hub
      Sky TV: SkyQ2tb + minis
      Join Date
      Jun 2011
      Location
      England
      Posts
      1,848
      Thanks
      11
      Thanked 154 Times in 146 Posts

      Sky Full Year to 31 June 2017 financial results

      Sky Full Year to 31 June 2017 financial results announced today 27th July 2017.

      STRONG YEAR DELIVERING ON OUR GROWTH STRATEGY
      • 10% increase in revenue on a comparable 52 week basis to £12.9 billion; 5% growth at constant currency(1)
      • EBITDA of £2,139 million; operating profit of £1,468 million, down only £97 million after absorbing £629 million of Premier League costs
      • Earnings per share of 61.4 pence, 3% lower
      • Return to profit growth in Q4, operating profit up 8% to £455 million, EPS up 19%
      • Statutory results: 8% revenue growth, operating profit of £964 million, EPS of 40.6 pence, up 4%
      • 686,000 new customers to 22.5 million, with 77,000 in Q4; reached 5 million milestone in Germany in July
      • Excellent year on screen with over 100 million viewers across Europe and a record number of Sky Originals on air including Riviera, our most popular premiere series to date
      • Partner of choice for the best content providers with significant new rights acquired across all markets
      • Innovation continuing to deliver for customers with Sky Q in over 1 million UK homes and newly launched Sky+Pro in Germany & Austria reaching 460,000 homes
      • Expanding into new markets and building new revenue streams with the launch of Sky Mobile achieving high single-digit share of sales in June
      • Strong set of growth plans for 2017/18

      Jeremy Darroch, Group Chief Executive, commented:
      “Sky’s growth and development has continued to be strong in 2017. We have driven a 10% increase in revenue on a comparable 52 week basis to £12.9 billion despite market headwinds. Operating profit is excellent, down £97 million despite additional Premier League costs and investment in new businesses, with particularly strong results in Germany & Austria and Italy where operating profit increased by £115 million. As we exit a year of investment, we returned to profit growth in the fourth quarter with operating profit up 8% and EPS up 19%.
      Looking ahead we have a strong set of growth plans for the year. We will be increasing investment in Sky originals by 25% as we build on our track record for producing world-class entertainment. We will make the customer experience ever better as we roll out Sky Q to Italy, Germany and Austria while also launching Sky Q without the need for a satellite dish. We are creating 300 new technology roles to further enhance our capability to deploy in and out-of-home streaming platforms. Sky Mobile will continue to scale up as we take advantage of the headroom in our customer base and offer our customers more Sky products. Loyalty will be recognised and rewarded through a new tenure-based loyalty programme in the UK, building on the outstanding success of a similar programme in Italy. We will continue to identify opportunities to reach new customers through the recently launched new portfolio of channels and pricing to drive growth in Sky Sports UK and we intend to launch a simple and affordable OTT service in Spain. We will do all this while continuing to execute against our operating efficiency plans.
      We enter 17/18 in a strong position with significant growth potential. Despite the broader consumer environment remaining uncertain, we are confident of delivering on the plans we’ve laid out as we continue to give our customers the best content, great products and industry leading service.”

      https://corporate.sky.com/documents/...ss_release.pdf
      SUMMARY OF GROUP OPERATIONAL AND FINANCIAL PERFORMANCE
      We have made significant progress against our strategic priorities; to grow our revenues and profits while creating sustainable value for shareholders over the medium term by providing the broadest range of the best content for every household, innovating at pace to create the best products, extending our lead as the number one customer service brand in our space, and at the same time expanding into new markets and building new revenue streams, all underpinned by sustained operating cost improvement.
      This approach has enabled us to deliver strong results whilst building the business for the future. Group revenue grew like-for-like (excluding the impact of the 53rd week in the prior year) by 10% to £12.9 billion (5% growth at constant currency), despite headwinds in the UK advertising market and pressure on consumer spending across Europe. We delivered an operating profit of £1,468 million, down only 6% or £97 million on the prior year despite additional Premier League costs of £629 million and investment in Sky Mobile (£51 million). Within this, Italy and Germany & Austria grew strongly, together delivering year-on-year growth in operating profit of £115 million. EBITDA was broadly flat if we exclude investment in our new businesses. Furthermore, in the fourth quarter, we returned to Group profit growth with operating profit up 8% and EPS up 19%.
      We continue to attract new customers to our services across all our markets and through our ongoing investment in the customer experience, generating even higher customer engagement. At 30 June 2017, we had 22.5 million customers taking almost 60 million products, having added 686,000 new customers and almost 2.7 million products in the last year. In the fourth quarter, we added 77,000 new customers and 333,000 additional products. It was a record year for Sky Store, with more than 18 million transactions driving us to a 34% share of the digital retail ownership market. We increased reach by 2% in Q4 and we now regularly achieve over 100 million viewers across Europe.

      https://corporate.sky.com/documents/...ss_release.pdf
      Last edited by lettice; 27-07-17 at 07:24 AM.

    2. The Following User Says Thank You to lettice For This Useful Post:

      Scubbie (27-07-17)


    3. Advertisement
    4. #2
      lettice's Avatar
      lettice is online now Sky User Member
      Exchange: 0.4 mile away
      Broadband ISP: Sky Fibre Unlimited
      Router: ER110UK Sky Q hub
      Sky TV: SkyQ2tb + minis
      Join Date
      Jun 2011
      Location
      England
      Posts
      1,848
      Thanks
      11
      Thanked 154 Times in 146 Posts

      Re: Sky Full Year to 31 June 2017 financial results

      More details...

      Plans for 2017/18
      We have a full and ambitious set of plans for the next 12 months. Although the economic backdrop remains uncertain, we continue to focus on giving more quality, choice and value to our customers.
      Building on this year’s on-screen success means we will continue to broaden our offering, showcasing the best of the US, like the highly-anticipated seventh series of Game of Thrones, Ray Donovan and the fourth series of The Affair. We will also step up our investment in Sky Original productions by 25% and continue to monetise these across our markets as well as sell into territories where we do not operate a direct-to-consumer business. Local dramas such as Babylon Berlin in Germany, Britannia in the UK and the return of the third season of Italian crime drama Gomorrah illustrate our strength in local programming that other SVOD providers cannot match. We are already working on our first major co-production under our new agreement with HBO, a big budget drama documenting the true story behind the Chernobyl disaster, which we will air in 2019. In addition, we will invest to broaden our entertainment offering within each market, for example extending Sky 1 and the entertainment pack more generally in Germany & Austria to further increase consumption.
      With an estimated four million sports fans within our UK customer base that don’t currently take Sky Sports we have identified a significant new growth opportunity. To meet this demand we recently expanded Sky Sports, with new channels and new pricing, giving our customers an even better experience. The brand-new line-up of ten sports channels includes dedicated channels for Premier League, Football, Cricket, Golf and Formula 1 together with more debate, analysis and behind-the-scenes shows and improved digital platforms. These changes come ahead of the kick-off in August of new football seasons from the Premier League and English Football League and a fantastic line-up this Autumn including the West Indies’ cricket tour of England, the culmination of the exciting Formula 1 season, Autumn Internationals in rugby union, and the ATP World Tour tennis finals in London.
      We look forward to an exciting new season of German Bundesliga at the start of our new contract, where, in addition to exclusive coverage of the majority of matches in Bundesliga 1, we will also become the exclusive live broadcaster for all matches of the Bundesliga 2 regular season, with an additional exclusive live match on Monday evenings. In Italy the Moto GP season approaches its finale with the exciting prospect of Valentino Rossi winning his tenth title. We also eagerly await the start of the new Serie A season, which for the first time will guarantee qualification for the top four clubs (an increase from the top two) to the following season’s UEFA Champions League competition, for which Sky has the exclusive rights.
      We have significant plans to further develop and improve the customer viewing experience in each of our territories. Today, we have announced that Sky Soundbox, our brand new all-in-one sound system for use with Sky Q, Sky+ and standalone TVs, will launch later this year to transform the TV sound experience for customers. We will introduce Sky Q into Italy and Germany & Austria later this year and will continue to enhance Sky Q features and functionality. We have a strong pipeline including voice control and greater personalisation, building Sky Q’s position as one of the world’s leading TV platforms. We will also launch our Sky TV service without the need for a satellite dish, opening up new headroom for growth by giving people who can’t or won’t have a dish on their property the Sky Q experience.
      Building on our position as one of Europe’s leading technology companies we are announcing today the creation of 300 new tech roles – representing a 25% increase in our software engineering workforce. The new roles will be split between Milan, Leeds and London under our new innovation centre, Sky Labs. This additional resource will enhance our capability to deploy the market leading in and out-of-home streaming platforms that our customers demand; create brilliantly usable on-screen interfaces; develop enhanced personalization and app-based platforms.
      Our loyalty programme in Italy continues to be an outstanding success and we will now export this to our other markets. In the Autumn, we are launching a similar programme in the UK, recognising and rewarding the longevity of our customers in order to build even stronger relationships. Initial trials have been encouraging. Our move to a digital first customer service experience is also progressing well. We have launched new digital service apps in all our markets and we will be looking to accelerate customer take up of these services over the next 12 months.
      We will continue to expand our portfolio of growth opportunities, including accelerating the growth of Sky Mobile which launched earlier in 2017. Both our SIM-only and handset propositions have landed well with customers and having initially been focused on building awareness amongst our customer base, we now plan to scale growth.
      Our associate, Sky Bet, has continued to experience strong growth since we sold an 80% stake to CVC Capital Partners and, for the 12 months to 31 March 2017, grew revenues by 46% to £488 million. As a result of its strong financial performance, the shareholders have undertaken a review of its capital structure and in June 2017 Sky Bet fully redeemed a Sky vendor loan note amounting to £83 million in cash. In 2017/18, we expect to receive an additional c.£100 million in distribution from a re-capitalisation of the business whilst also retaining our 20% stake.
      Having created a high growth business for Sky’s shareholders, conservatively realising value in excess of £1 billion, we intend to re-invest some of the latest Sky Bet proceeds to create future value by expanding the footprint of our OTT services, leveraging the success of our existing multi-territory streaming platform and our capability in creating original content. Accordingly, during the first half of our fiscal year, we intend to launch a simple and affordable OTT service in Spain, the Eurozone’s fourth largest economy and the market which has the largest free-to-air (FTA) headroom in Europe outside of our existing footprint.

      UK and Ireland
      In the UK and Ireland our focus has been on maximising the returns on the significant content and product investments we have made over the last few years, as well as delivering broad based revenue growth from new products and services, such as transactional and advertising, alongside pay TV subscription.
      These priorities have led to a good financial and operational performance with like-for-like revenue up 4% to £8,600 million - despite the challenging environment facing most UK consumer businesses and the prevailing headwinds in the advertising market - and an operating profit of £1,292 million.
      We added 280,000 new customers this year, including 35,000 in Q4, with a further 1.6 million products sold. This included 111,000 new TV products, taking our total TV customer base to over 11.4 million. In addition, we grew penetration of fibre to more than one in four of our broadband customers.
      We have bolstered our position as the number one content brand across the key TV genres of entertainment, movies and sports. In entertainment we secured major long term rights agreements with NBCUniversal, Discovery, UKTV and A+E Network. We relaunched Sky Cinema, with a new premiere every day which resonated well with customers. In sports we launched a new sports channel Sky Sports Mix, which has been viewed by around 11 million people and shown 40 different sports since launch, and we secured rights to exclusively broadcast live English domestic and international cricket at home until 2024.
      It’s been a big year for Sky Originals in the UK. We have delivered more than one million viewers on average per episode for each of our last eight drama productions. On Sky Atlantic, we have set new records with Riviera achieving almost 12 million downloads and well over two million viewers so far.
      The customer viewing experience continues to improve. Our world-leading Sky Q platform has gained real traction with our customers and is now in over 1 million homes, with around 22% of new customers choosing to pay £12 per month for additional Sky Q multiscreen functionality. We are continually improving Sky Q, releasing great new features like voice search and enhanced personalisation, as well as launching the UK’s most comprehensive Ultra HD (UHD) service. Alongside Sky Q sits our OTT offering, NOW TV, which we have enhanced by launching an innovative new NOW TV box, introducing NOW TV Combo, the industry’s first contract-free triple play proposition, and in April launching NOW TV in Ireland, where for the first time we have utilised our newly developed group International OTT platform.
      We have made further progress in broadening our revenue growth, particularly with the launch of Sky Mobile. Our SIM-only offer went live in January, followed by the launch of our innovative handset proposition and a full above-the-line marketing campaign from the end of March. It is still early days but we are pleased with our initial progress; operations have run smoothly and we sold 97,000 SIMs by 30 June, including 74,000 in Q4 achieving a high single-digit market share of customer acquisitions in June.
      In addition, we have further grown our Sky Store business, supported by the launch of Box Sets within Sky Store Buy & Keep and Sky Store took 34% of the digital ownership market. Sky Store attracted more than 18 million transactions, helping to drive a 15% increase in revenue from transactional business.
      Against the backdrop of a weaker advertising market, we continued to make good progress with our Sky Media business, particularly through advanced advertising and our targeted advertising platform Sky AdSmart. Channel 5 became the first PSB to use the service, and we launched Sky AdSmart in Ireland, all of which helped our advertising business to outperform the market which we believe was down by 4% this fiscal year. In addition, we further extended the future reach of Sky AdSmart by entering into a targeted advertising partnership with Virgin Media.
      On a 12-month rolling basis churn was 11.5%, falling by 10 basis points since March. While churn remains at a level higher than we would like, we have a strong set of plans to address it. We’ve already seen an excellent response to our customer Christmas gifting campaign and we are now in the process of making our loyalty programme available for all customers in the UK and Ireland. We believe this programme will deliver tangible results by rewarding longevity in order to build even stronger customer relationships, learning from the success of our loyalty programme in Italy.
      We also launched our new My Sky digital service, centered upon the My Sky App. In its first six months the app has already been downloaded by almost 2 million customers. All of this is helping to cement our position as the leading customer services brand in our space, having led Ofcom’s service league table every quarter this year across pay-TV, fixed line telephony and broadband, and delivering record net-promoter-scores in service.

    5. #3
      lettice's Avatar
      lettice is online now Sky User Member
      Exchange: 0.4 mile away
      Broadband ISP: Sky Fibre Unlimited
      Router: ER110UK Sky Q hub
      Sky TV: SkyQ2tb + minis
      Join Date
      Jun 2011
      Location
      England
      Posts
      1,848
      Thanks
      11
      Thanked 154 Times in 146 Posts

      Re: Sky Full Year to 31 June 2017 financial results


    6. The Following User Says Thank You to lettice For This Useful Post:

      speedyrite (27-07-17)

     

     

    Tags for this Thread

    Posting Permissions

    • You may not post new threads
    • You may not post replies
    • You may not post attachments
    • You may not edit your posts
    •  
    SkyUser - Copyright © 2006-2014. SatDish and NewsreadeR | SkyUser is in no way affiliated with Sky Broadband / BSkyB
    RIPA NOTICE: NO CONSENT IS GIVEN FOR INTERCEPTION OF PAGE TRANSMISSION