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Feeling the economic chill: Sky interim 2012 results - Venture Insights

Report Overview

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Feeling the economic chill: Sky interim 2012 results

PublisherEnders Analysis.
Publish Date February 6, 2012
Sector Fixed Line (Internet and Voice), Pay TV.
Company Sky Group.

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Sky’s 16% year-on-year increase in interim profits reflects strong operating efficiencies and reduced marketing costs due to the slowdown of TV gross additions in a tough economic climate, while continuing low churn underlines its product strengths

Fibre broadband deployment and the January launch of streaming-only services by Lovefilm and Netflix signal increasingly competitive conditions, but Sky is well placed and the challenges should take several years to materialise

Sky management is fully aware of the need for its pay-TV business model to evolve in the age of digital convergence, where innovation and building value are prerequisites of success, and is actively addressing the issues