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Sky gets connected - H1 2014 results - Venture Insights

Report Overview

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Sky gets connected – H1 2014 results

PublisherEnders Analysis.
Publish Date February 3, 2014
Sector Fixed Line (Internet and Voice), Pay TV.
Company Sky Group.

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Operating profits took a dip in H1 2014 as Sky absorbed the £110 million hike in Premier League (PL) football rights, saw marketing spend rise as a result of strong product growth and invested £40 million in its connected TV services.

Growth has stayed positive across the range of TV and home communications products, while the new User Interface due to launch in the next few months promises to unlock significant incremental revenues as well as underline the quality of Sky offerings in movies and entertainment.

Sky has no time to lose in building on its strengths in content, service quality and customer loyalty as the next PL auction looms towards the end of calendar 2014/first half of 2015, but the strategy appears sound with strong revenue and upside potential.