Sky reports 4Q 2014 results

MIDDLESEX, United Kingdom — British Sky Broadcasting Group PLC (LSE:BSY) has released unaudited results for the three months ended 31 December 2014.

Jeremy Darroch, Group Chief Executive, Sky, commented: “Alongside our continued strength in the UK and Ireland, the acquisition of Sky Italia and Sky Deutschland gives us an expanded opportunity for growth. Both businesses had a strong quarter, Germany posting its highest ever customer growth and Italy showing resilience with good customer growth in a challenging economic environment. Integration is progressing well and we are excited about the potential for the three businesses to be even stronger together.”

UK & Ireland

Strong customer demand drove the highest product growth in four years at more than 1 million, 17% higher than the same period last year. Within this, TV growth more than doubled to 202,000 and we saw good growth in broadband with 106,000 additions.

The addition of 204,000 new retail customers in the quarter was the highest rate of customer growth since 2005 and reflected a good performance across both our Sky and NOW TV products.

Italy

The Italian business delivered a resilient performance in what remains a challenging economic environment. Customer growth of 30,000 in the quarter was the highest since Q1 2012 while total paid-for products increased by 47,000. HD accounted for much of this growth with net additions of 35,000 in the quarter, taking HD penetration to 66% of the base versus 55% last year.

Germany

Sky in Germany delivered record retail customer additions of 214,000 in Q2, 55% more than the prior year and taking the total retail customer base past the 4-million milestone. Paid-for products grew by 421,000, more than double the growth for the same period last year. Within this, HD continued to grow strongly with growth of 148,000 in the quarter.

Group Customer Metrics (unaudited)

                                                        Quarterly
                              As at      As at  Annual  Growth to
                          31-Dec-14  31-Dec-13  Growth  31-Dec-14
                          ---------  ---------  ------  ---------
Total Customers (‘000s)      24,842     23,649  +1,193       +493
  UK & Ireland               15,830     14,954    +876       +249
  Italy                       4,734      4,760     -26        +30
  Germany                     4,278      3,935    +343       +214

Retail Customers             20,607     19,757    +850       +448
  UK & Ireland               11,750     11,330    +420       +204
  Italy                       4,734      4,760     -26        +30
  Germany                     4,123      3,667    +456       +214

Wholesale Customers           4,235      3,892    +343        +45
  UK & Ireland                4,080      3,624    +456        +45
  Germany                       155        268    -113          -

Paid-for products (‘000s)    52,033     47,461  +4,572     +1,488
  UK & Ireland               36,555     33,307  +3,248     +1,020
  Italy                       8,684      8,259    +425        +47
  Germany                     6,794      5,895    +899       +421