Tech
Sky have released their interim results for the quarter ending 31 December this morning. Digital Spy takes a look at the highlights.
Subscriptions
At 31 December, the total number of Sky Digital subscriptions stood at 5,716,000 in the UK and Ireland; with a net increase of 218,000 over the quarter. Two new subscription products, the Extra Digibox and Sky+, were launched during the quarter, with subscription levels of 17,000 and 11,000 respectively. Approximately 40% of Sky+ subscribers also took out subscriptions to an Extra Digibox.
The total number of subscribers to Sky1 channels across all platforms increased by 1.0 million in the quarter to 11.2 million (approximately 44% of TV households in the UK and Ireland). Cable and DTT subscriptions to Sky channels rose by 813,000, mainly due to the fact that Sky One and Sky News became available in the basic package for all NTL television homes.
Financial
Operating profit (before goodwill and exceptional items) for the six months to 31 December 2001 was £70 million, an increase of 39% on the six months to 31 December 2000. EBITDA for the period (operating profit before exceptional items, depreciation and amortisation of goodwill and intangible assets) increased by 43% to £111 million.
Revenues increased by £234 million to £1,320 million, up 22% on the same period last year. Operating expenditure increased by a smaller amount, up £215 million to £1,250 million.
Loss before tax was £62 million, and the loss after tax was £1,354 million, resulting in a loss of 71.8 pence per share.
Costs
Programming costs increased by £121 million to £657 million. Sports costs were up by £80 million to £273 million, mainly due to the £69 million increase in the cost for the period of the new Premier League contract, which started in August 2001.
An increase in movie costs of £18 million to £180 million, reflected an increased proportion of 'hit' titles, a 6% increase in the average number of movie subscribers and increased volumes of pay-per-view purchases.
Marketing costs increased 3% to £220 million as reductions in set top box costs and above-the-line spending were offset by the consolidation of BiB's set top box subsidy.
The subscriber acquisition cost (SAC) fell from approximately £250 in the comparable period to £235. Subscriber management costs increased by 25% to £146 million, due to the 17% increase in the average number of DTH subscribers over the comparable period and the introduction of several new products.
Comment
"The last six months have seen another strong operating performance," said Tony Ball, BSkyB CEO. "We have over 5.7 million subscribers, revenue per subscriber is growing by 10% a year and we are now generating positive free cashflow. Sky's investment in digital has peaked and we now look forward to reaping the benefit. We have today announced the write-off of the goodwill of £985 million relating to our investment in KirchPayTV. However, we remain focused on protecting our rights and securing full value from our put option."
Subscriptions
At 31 December, the total number of Sky Digital subscriptions stood at 5,716,000 in the UK and Ireland; with a net increase of 218,000 over the quarter. Two new subscription products, the Extra Digibox and Sky+, were launched during the quarter, with subscription levels of 17,000 and 11,000 respectively. Approximately 40% of Sky+ subscribers also took out subscriptions to an Extra Digibox.
The total number of subscribers to Sky1 channels across all platforms increased by 1.0 million in the quarter to 11.2 million (approximately 44% of TV households in the UK and Ireland). Cable and DTT subscriptions to Sky channels rose by 813,000, mainly due to the fact that Sky One and Sky News became available in the basic package for all NTL television homes.
Financial
Operating profit (before goodwill and exceptional items) for the six months to 31 December 2001 was £70 million, an increase of 39% on the six months to 31 December 2000. EBITDA for the period (operating profit before exceptional items, depreciation and amortisation of goodwill and intangible assets) increased by 43% to £111 million.
Revenues increased by £234 million to £1,320 million, up 22% on the same period last year. Operating expenditure increased by a smaller amount, up £215 million to £1,250 million.
Loss before tax was £62 million, and the loss after tax was £1,354 million, resulting in a loss of 71.8 pence per share.
Costs
Programming costs increased by £121 million to £657 million. Sports costs were up by £80 million to £273 million, mainly due to the £69 million increase in the cost for the period of the new Premier League contract, which started in August 2001.
An increase in movie costs of £18 million to £180 million, reflected an increased proportion of 'hit' titles, a 6% increase in the average number of movie subscribers and increased volumes of pay-per-view purchases.
Marketing costs increased 3% to £220 million as reductions in set top box costs and above-the-line spending were offset by the consolidation of BiB's set top box subsidy.
The subscriber acquisition cost (SAC) fell from approximately £250 in the comparable period to £235. Subscriber management costs increased by 25% to £146 million, due to the 17% increase in the average number of DTH subscribers over the comparable period and the introduction of several new products.
Comment
"The last six months have seen another strong operating performance," said Tony Ball, BSkyB CEO. "We have over 5.7 million subscribers, revenue per subscriber is growing by 10% a year and we are now generating positive free cashflow. Sky's investment in digital has peaked and we now look forward to reaping the benefit. We have today announced the write-off of the goodwill of £985 million relating to our investment in KirchPayTV. However, we remain focused on protecting our rights and securing full value from our put option."
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