Sky claims another strong quarter: growth in transactional revenue but more churn
A decision to limit discounts offered to customers meant that customer churn was 10.7%. Sky connected 46,000 more users to its broadband service in the latest quarter.
Also during the latest three month period, Sky connected homes grew by almost 400,000, taking the total to 11 million. This supported a 44% increase in connected views year on year, to 2.6 billion in the past nine months.
Transactional revenue was Sky's fastest growing segment, up 21% to £141 million, with the continued strong performance of Sky Store in the UK, growing demand for Now TV Sports passes and three major pay-per-view boxing events in the year to date cited by the pay TV giant for the increase.
Sky does not break down how many of its customers use its satellite pay TV service and how many only use of their online streaming services, including Now TV in the UK.
Over at Sky Germany, the company said 40% of its subscribers had moved to the new, more expensive Entertainment pack, which offers more channels and full access to on-demand content, leading to the company recording an increase of revenue per user of €2 a month.
In recent weeks, Sky has announced it will be taking all UK Formula 1 TV rights once the current deal expires in 2018. A new children's app - Sky Kids - has been unveiled in the UK and Ireland, with the app to launch in other countries later in the year. Playout of Sky Germany's channels will be migrated to Sky Italy in Milan. And the on-screen look of Sky's TV channels are being harmonised across the company's different European divisions. Meanwhile, a raft of new homegrown drama commissions for Sky 1 and Atlantic were announced yesterday. Meanwhile, Sky is expected to launch its first UHD service later this summer.
Sky's shares fell on the results announcement.