Sky hit by costs of Premier League, announces HBO deal

 
Helen Cahill
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Sky has already co-produced drama series with HBO (Source: Getty)

Sky's share price was flat this morning after it said its profits edged down on increased football broadcasting costs.

The figures

Revenues at the media giant rose by five per cent on a constant currency basis to £9.64bn for the nine months to the end of March.

Read more: Government refers 21st Century Fox-Sky deal to regulators

However, profits fell from £1.142bn to £1.013bn, due to the £494m increase in the costs of broadcasting live Premier League football.

Sky said it had attracted 769,000 new customers over the past year, with 106,000 joining in the last quarter.

In the UK, revenues increased by four per cent to £6.410bn.

Why it's interesting

Alongside its results, Sky announced a £195m partnership with the US television network HBO. The aim of the deal is to make "high-end drama", putting out two drama series every year, and the first projects are already underway. Sky said the first broadcasts are set for 2018. The pair have already co-produced several successful series, including the Young Pope.

What Sky said

Jeremy Darroch, Sky chief executive, said: "Looking forward, we enter the final quarter of our fiscal year in good shape. Despite the broader consumer environment remaining uncertain, we continue to deliver on our strategy and are on track for the full year."

Jeremy Darroch, Chief Executive Officer
Jeremy Darroch, chief executive of Sky (Source: Getty)