Report Overview

Sky UK FY 2019 results: a solid first full year under Comcast

Despite operating in a challenging market, Sky has continued to increase revenues, with the resilient performance of its direct-to-consumer and content businesses offsetting the disappointing drop in advertising income

Across FY 2019, EBITDA was up 12.2%; profit growth driven by a significant reduction in “other” costs as large one-off effects disappear and cost-cutting continues

Extended distribution deals with Netflix and WarnerMedia will protect Sky’s content proposition for the coming future, as would the mooted integration of Disney+

Contents

Headline financials

• Continued DTC subscription growth; ARPU returns to growth
• Content revenue continues to grow; a stronger slate to thank?
• Advertising down as a weak market and whistle-to-whistle bite
• EBITDA meets full year guidance

Operational developments

• Viewing and content in the UK
• Distribution deal with Disney+
• NBCU’s Peacock—international deployment through Sky?
• European football auctions
• $300 million investment in Sky Q and Italian broadband
• Sky/NBC News service
• UK full fibre broadly positive for Sky
• Sky in France?

List of charts/tables

Figure 1: Headline financials ($m) and YoY growth rates

Figure 2: Sky retail customer net adds (000)

Figure 3: YoY growth in Sky DTC subscribers and ARPU* (%)

Figure 4: Sky annual net subscriber additions (000)

Figure 5: UK Sky branded channels’ share of viewing, individuals 4+ (%)

Figure 6: NBCU TV programmes† in the United Kingdo

Figure 7: Retail ISPs market shares