Sky reported "stronger than expected growth in both profit and customer demand in the three months to the end of September" while securing "regulator and shareholder approval for its takeovers of Sky Italia and Sky Deutschland," according to John Aglionby of the FINANCIAL TIMES. Sky, Britain's "biggest paid-TV service," reported an 11% increase in "adjusted operating profit over the same period last year" to £316M ($508M) on a 6% increase in revenue to £1.93B ($3.1B). Nomura had "expected the company to add 70,000 new broadband subscribers." Analysts at UBS said the figures were the "strongest first-quarter results in four years." UBS said in a research note, "We think revenues from new initiatives are starting to scale, albeit from a small base, and we think their impact on revenue growth will become more evident over the coming quarters" (FT, 10/16). REUTERS' Kate Holton reported Sky said on Thursday that it "could end up buying more" of Sky Deutschland than "originally expected," as the recent bout of "broad stock market weakness makes its low-ball offer more attractive." Sky agreed in June to pay $9B for Rupert Murdoch's 57% stake in Sky Deutschland and all of Sky Italia. Sky Deutschland advised minority
shareholders to "keep hold of their shares," but Sky CEO Jeremy Darroch said on Thursday "investors may now rethink that idea." Darroch: "I
wouldn't be surprised if we get a lot more take up and I think the
volatility we are seeing is probably making people reflect on that" (REUTERS, 10/16). In London, Gideon Spanier reported Sky's revenues rose thanks to a surge in mobile and on-demand service Sky Go Extra and a "very strong quarter" from Sky Sports, with the Ryder Cup and new football season (EVENING STANDARD, 10/16).
