Sky To Boost Drama Spend By 25% & Move Into New Markets After Posting Revenue Growth
Sky is to bolster its spend on drama programming and expand into more territories after posting impr..
Sky is to bolster its spend on drama programming and expand into more territories after posting impressive revenue growth.
The pay-TV company, which is currently being circled by 21st Century Fox and Comcast, has grown its revenues by 5% to £13.6B over the last twelve months. It has also increased its EBITDA in its established business by 11% to £2.5B in the year ending June 30 2018.
The Patrick Melrose and Riviera broadcaster will increase its gross investment in original drama by 25% this year after its international distribution division Sky Vision hit its £200M revenue target two years early.
The firm added that it would “open up” new opportunities by entering new geographic markets. In addition to its core markets of the UK, Germany and Italy, the company launched services in Spain and Switzerland and plans to expand direct to consumer services.
The results come as 21st Century Fox is expected to increase its offer for Sky, continuing its bidding war with Comcast. CEO Jeremy Darroch, speaking on the companys financial results conference call, wouldnt discuss the process and added that he and COO and CFO Andrew Griffith hadnt had conversations about their own futures. “We will do that at the right time when one of the companies emerges,” said Darroch.
Darroch added, “Our strong performance reflects the execution of our strategy over an extended period of time, driving sustained growth in revenue, profits and shareholder returns. We do this by providing our customers more of the best content, world class innovation in products and services, combined with industry leading front-line service. Together with an increasingly agile and efficient organisation, we are able to deliver for shareholders whilst ensuring the customer experience is better than anywhere else.
“We therefore enter the year ahead with good momentum. We have an excellent set of plans and were focused on executing them well. We are proud that Sky is recognised globally as an outstanding business and are confident we have the right assets and capabilities to continue creating long term growth opportunities and to capitalise on the strong position weve built.”
