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Sky plc growing synergies – Q4 2015 results - Venture Insights

Report Overview

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Sky plc growing synergies – Q4 2015 results

PublisherEnders Analysis.
Publish Date August 6, 2015
Sector Broadcast TV, Media, Non-UK Media, Telecom, TV.
Company SKY, Sky Deutschland, Sky Italia.

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The first set of annual results to include all three Sky pay-TV operations in Europe shows Sky plc to be off to a very good start: subscriber growth up by 5%, churn everywhere below 10%, adjusted group revenues up 5% and operating profit up 18%.

Excellent though the start has been, each of the pay-TV operations faces its own specific challenges – be they to do with ARPU growth in Germany & Austria, subscriber growth in Italy, or football in some shape or form across all three markets and nowhere more so than in UK & Ireland.

Most importantly for the Sky European merger, the latest results indicate that Sky is well on course with its target annual run-rate of £200 million in synergies by 2017; but with the UK model to act as a template, it is the fast-growing connected space that catches the eye.