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| Sky dismisses Brexit effect as profits rise by 12% | Sky dismisses Brexit effect as profits rise by 12% |
| (30 days later) | |
| Sky has said the UK’s Brexit vote is unlikely to hurt it financially as it reported that full-year operating profit rose by 12% to a record £1.56bn. | Sky has said the UK’s Brexit vote is unlikely to hurt it financially as it reported that full-year operating profit rose by 12% to a record £1.56bn. |
| The broadcaster has become a pan-European operation since taking control of the Sky Deutschland and Sky Italia services in 2014, adding Germany, Austria and Italy to its existing markets in the UK and Ireland. | The broadcaster has become a pan-European operation since taking control of the Sky Deutschland and Sky Italia services in 2014, adding Germany, Austria and Italy to its existing markets in the UK and Ireland. |
| Once the impact of Sky’s sale of a stake in ITV last year and the impact of restructuring charges over the last 12 months were included, profits rose by just by 1% to £977m. | Once the impact of Sky’s sale of a stake in ITV last year and the impact of restructuring charges over the last 12 months were included, profits rose by just by 1% to £977m. |
| Total revenues for the group rose by 7% to £11.96bn for the year to 30 June, as it added more than 800,000 customers. | Total revenues for the group rose by 7% to £11.96bn for the year to 30 June, as it added more than 800,000 customers. |
| In the UK and Ireland, revenues increased by 7% to more than £8bn for the first time, with operating profit up 11% to £1.5bn. | In the UK and Ireland, revenues increased by 7% to more than £8bn for the first time, with operating profit up 11% to £1.5bn. |
| Chief executive Jeremy Darroch said that Brexit “doesn’t really change our thinking” in any of Sky’s markets, in part because people stay at home and watch TV when finances are tight. | Chief executive Jeremy Darroch said that Brexit “doesn’t really change our thinking” in any of Sky’s markets, in part because people stay at home and watch TV when finances are tight. |
| He added: “Media largely remains pretty local market, we have strong on the ground presence in each of those markets it certainly hasn’t changed any views. | He added: “Media largely remains pretty local market, we have strong on the ground presence in each of those markets it certainly hasn’t changed any views. |
| “The only thing that people reflect on the UK, if the UK went more into recession, as we’ve seen on the past when that happens people tend to regress to the home. They are more careful about where they spend their money, and as you’ve seen we’ve done very well in that environment because we offer a great service for families to entertain themselves in the home.” | “The only thing that people reflect on the UK, if the UK went more into recession, as we’ve seen on the past when that happens people tend to regress to the home. They are more careful about where they spend their money, and as you’ve seen we’ve done very well in that environment because we offer a great service for families to entertain themselves in the home.” |
| Darroch said the relatively low pay-TV takeup in Germany presented a huge opportunity for Sky. The company is launching a Sky 1 family of entertainment channels in Germany with programmes such as MasterChef, which will be shown in the country for the first time. | Darroch said the relatively low pay-TV takeup in Germany presented a huge opportunity for Sky. The company is launching a Sky 1 family of entertainment channels in Germany with programmes such as MasterChef, which will be shown in the country for the first time. |
| “We see huge potential in Germany – it’s the biggest TV market in Europe,” he said. “We are taking everything we know about growing the market in in the UK to make the most of the significant opportunity ahead of us.” | “We see huge potential in Germany – it’s the biggest TV market in Europe,” he said. “We are taking everything we know about growing the market in in the UK to make the most of the significant opportunity ahead of us.” |
| Darroch also hailed the company’s performance in Italy which has proved a more difficult market, adding: “That Italy returned to customer growth for first time in five years is a real achievement in a market with more economic headwinds. | Darroch also hailed the company’s performance in Italy which has proved a more difficult market, adding: “That Italy returned to customer growth for first time in five years is a real achievement in a market with more economic headwinds. |
| “The power of the three Skys as one group is really starting to take shape.” | “The power of the three Skys as one group is really starting to take shape.” |
| Sky has invested in a new range of products over the year, including the high-end Sky Q which links different screens across the home, and the Sky Now TV Combo, which offers rolling bundles of internet, phone and pay-TV channels without long term contracts. | Sky has invested in a new range of products over the year, including the high-end Sky Q which links different screens across the home, and the Sky Now TV Combo, which offers rolling bundles of internet, phone and pay-TV channels without long term contracts. |
| It has also built a virtual reality studio, and has plans to release a virtual reality app and 12 free short VR films later this year. However, Darroch said it would take a while for VR to make an impact: “Virtual reality as as category will be reasonably long term. I think over time it can play a big role and complementary role. | It has also built a virtual reality studio, and has plans to release a virtual reality app and 12 free short VR films later this year. However, Darroch said it would take a while for VR to make an impact: “Virtual reality as as category will be reasonably long term. I think over time it can play a big role and complementary role. |
| “Our ambition as Sky is to be right at the forefront of that, to help lead the industry and we always thing how do we shape the industry involvement.” | “Our ambition as Sky is to be right at the forefront of that, to help lead the industry and we always thing how do we shape the industry involvement.” |
| Darroch also welcomed the decision by UK communications regulator Ofcom to tell telecoms firm BT to give more independence to its Openreach division, which operates the infrastructure used by providers such as Sky to deliver broadband. However, he said he would have liked it to go further towards a complete separation. | Darroch also welcomed the decision by UK communications regulator Ofcom to tell telecoms firm BT to give more independence to its Openreach division, which operates the infrastructure used by providers such as Sky to deliver broadband. However, he said he would have liked it to go further towards a complete separation. |
| He said: “It’s a step in the right direction. We would prefer them to have been much bolder.” | He said: “It’s a step in the right direction. We would prefer them to have been much bolder.” |
| “The core issue remains that Openreach are not ... properly incentivised to invest in broadband at the right pace ... As long as BT continue to control the purse strings, things will stay where they are.” | “The core issue remains that Openreach are not ... properly incentivised to invest in broadband at the right pace ... As long as BT continue to control the purse strings, things will stay where they are.” |