Broadcaster Sky (LON:SKY) saw profits take a heavy hit in the first half of the financial year, after forking out more than expected to retain the broadcast rights to Premier League football matches.
The group disclosed a 9 percent fall in operating profits on Thursday, dropping to £679 million for the six months to 31 December. However, the company did show a 12 percent increase in revenue to £6.4 billion, as well as record on-demand viewing of two billion streams.
Jeremy Darroch, Group Chief Executive, called the first half “strong”, highlighting that in “the past three years and since the Skys have come together, we’ve now added 2.5 million customers and total products are up almost 25 percent”.
“Whilst we expect the backdrop in our territories to remain uncertain, we are on track as we enter the second half of the financial year and we remain focused on delivering our clear strategy for growth”, he continued.
The company also announced the launch of its first fully online service, making hundreds of channels available over the internet. Customers will be able to get the broadband-only service from next year, without needing a sky satellite dish.
Sky has 22 million customers in the UK, the Republic of Ireland, Italy, Germany and Austria and is 39 percent owned by Rupert Murdoch’s 21st Century Fox company. Late last year, Murdoch offered to buy out the remaining 61 percent of the business, which has yet to receive full acceptance from shareholders. Many have expressed concern about the independence of the Sky board, given that Murdoch’s son, alongside other directors, hold positions at both companies.
Sky shares are currently up 0.10 percent at 1,004.00 (1635GMT).