Sky profits hit by Premier League costs despite boosted revenue

 
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Leicester City v Manchester United - Premier League
The Premier Leage cost the company £629m (Source: Getty)

Sky Plc shed £97m from its operating profits this year as it absorbed the £629m cost of its deal with the Premier League.

The figures

The broadcaster increased revenue by 10 per cent to £12.9bn in the year to 30 June, but it was not enough to offset the impact on operating profits, which slipped six per cent from £1.57bn to £1.47bn.

Underlying profits also felt the impact, slipping three per cent from £2.21bn to £2.14bn.

But the company saw a return to profit growth in the final quarter, increasing operating profit by eight per cent to £455m.

Read more: Should we fear Fox's takeover bid for Sky?

Why it's interesting

Despite the expense of screening big sporting events, Sky still sees the sports market as one of its major targets for growth. The company pinpointed four million sports fans among existing customers who do not currently use Sky Sports. It is ramping up its sports offering in order to get this base signed up.

Other plans going forward include diversifying the group's portfolio. The company said it wants to accelerate the growth of Sky Mobile, which launched this year.

As demand for streaming on the go increases, the company also said it will create 300 new tech jobs across Milan, Leeds and London.

The proposed takeover of Sky by Fox is still uncertain, as culture secretary Karen Bradley keeps Rupert Murdoch waiting.

What the company said

"We enter 2017/18 in a strong position with significant growth potential," said Jeremy Darroch, group chief executive. "Despite the broader consumer environment remaining uncertain, we are confident of delivering on the plans we've laid out as we continue to give our customers the best content, great products and industry leading service."

Read more: Murdoch's pursuit of Sky: How did we get here?

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