Sky buoyant after beating full year forecasts

European pay-television group Sky today (Wednesday) said it expects to perform strongly in its new financial year after posting better-than-expected profits for 2014-15.

Sky today released its results for the 12 months ending June 30, 2015, stating that group revenues for the year increased by five per cent to £11.283bn (€15.89bn/$17.51bn). This translated into an 18-per-cent increase in operating profit to £1.4bn, a figure Sky said represented an “outstanding result” in a year of change for the business.

At the heart of the group results was the UK and Ireland business, which delivered revenues up six per cent to £7.82bn and operating profit up 12 per cent to £1.35bn. Customer growth of 506,000 was the highest annual organic customer growth in 11 years and took Sky’s base past the 12m milestone.

Sky in Germany and Austria also delivered a strong year’s performance, achieving a nine-per-cent increase in revenues to £1.377bn and an 81-per-cent improvement in operating profit to record a loss of £11m, versus the 2014 loss of £57m. Sky Deutschland added 467,000 new customers, the highest customer growth since launch, including 55,000 new customers in quarter four.

Sky Italia delivered revenues of £2.086bn, with Sky stating this was down principally due to the absence this year of wholesale revenue from rights to football’s Uefa Champions League. This, combined with a “disciplined approach” to costs achieved a 56-per-cent improvement in operating profit to £61m. Sky added that Sky Italia’s customer base remained stable at 4.7m after three years of decline, stating this represented a good result in a “challenging market”.

“We think the outlook for growth is good,” Sky chief executive Jeremy Darroch told reporters. “The prospects for growth for the business over the next year, and thereafter… are very good.”

In November, UK pay-television broadcaster BSkyB announced it would be renamed Sky after completing a takeover of Sky Italia and acquiring a majority stake in Sky Deutschland. The deal brought together leading sports broadcasters in three of Europe’s four largest pay-television markets.