Sky TV lifts first-half profit as MySky numbers surge
Pay TV company Sky TV has reported a 3.8% gain in first-half profit, boosted by an increasing number of My Sky users. UPDATED with analyst comment.
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Pay TV company Sky Network Television has reported a 3.8% gain in first-half profit, boosted by an increasing number of MySky users.
Net profit was $62.6 million in the six months to December 31, up from $60.4 million in the previous same period, with sales climbing 7.3% to $426.9 million.
The company's MySky subscribers rose 43% to 331,041, pushing the total customer base to 846,340.
Forsyth Barr's Rob Mercer said the profit and revenue numbers were in line with expectations.
Mr Mercer said the increase in total subscribers, from 51,166 to 331,041, was ahead of market expectations.
So was the jump in those on MySky accounts.
The ForBarr research manager said the subscriber adds were a medium term positive, but placed pressure on short term costs.
"The improved financial position is primarily due to the continued success of the MySky HDi decoders, a positive period for advertising sales, higher average revenue per user resulting from revenues from the new SoHo channel which launched in November 2011 and strong subscriber acquisition," chief executive John Fellet said.
The company said it will pay a first-half dividend of 11 cents, up from 8 cents a year earlier.
Gross churn, which measures the number of cancelled subscribers, rose to 14.2% during the period, up from 13.6% a year earlier.
However, MySky was having a positive impact on the churn rate by encouraging subscribers to retain the service, Mr Fellet said.
Sky TV shares [NZX: SKT] were up 2.22% to $5.06 in midday trading.
NBR staff
Fri, 17 Feb 2012
Fri, 17 Feb 2012
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Sky TV lifts first-half profit as MySky numbers surge
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