New Zealand's Sky Network Sees 11% Profit Increase Despite Olympic 'Hiccup'
Sky Network TV has posted an 11% profit increase, "despite a hiccup" with the 2012 London Olympics, according to Matt Nippert of STUFF. Full-year results to June 30 show that Sky "recorded a net profit after tax" of NZ$137.2M ($107M) up from NZ$123.7M. Revenue increased 5% to NZ$885M. CEO John Fellet said that the profit boost "was mostly through up-selling to existing subscribers rather than attracting new customers." Fellet said that the much-publicized loss of rights to screen the Premier League to startup Coliseum Sports Media "had not resulted in a noticeable rush of disconnections." Fellet: "I'm sure there's probably at least a dozen [disconnections], but it certainly hasn't shown up in the numbers." Fellet said that Sky "had rights to other soccer competitions, and fans of the sport seemed unwilling to give this up" (STUFF, 8/23). In Auckland, John Drinnan reported coverage of the 2012 London Olympics "was the company's biggest programming initiative." Sky said, "The Olympics were a huge success from a viewership and customer satisfaction perspective but negatively impacted Sky's financial results for the period due to high production costs and lower than expected advertising revenue" (NEW ZEALAND HERALD, 8/23).