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Sky in 2023: Aggregation response to retrenching customers

9 February 2023
Access report

Sky is coping reasonably well with the shock of retrenching consumer spending, with revenues almost flat in Q4 2022.

However, profits are under pressure, as the increases in Sky’s costs cannot be fully passed on to customers, and the product mix is rebalanced towards telecoms and variable costs.

Management continues to leverage Sky’s brand strength and its critical mass of consumers to enter new markets, this time with home insurance.

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A possible sale of Sky Deutschland would make sense if it helps the buyer reach superior scale within Germany.

Access report

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Access report

  • Sky withstands the crisis: But is its German unit for sale?

    4 November 2022

    Revenues were stable year-on-year in Q3, with UK growth offsetting Continental decline. All three markets posted positive customer net adds across the quarter.

    Underlying profitability is improving, and although World Cup-related changes to the football schedule depressed net income in Q3, they will lift it in Q4.

    A possible sale of Sky Deutschland would make sense if it helps the buyer reach superior scale within Germany.

    Access report

  • Sky post-COVID: Strong recovery in the UK, rest to follow?

    16 February 2022

    Sky’s performance across 2021 significantly improved, driven in Q4 by a nice c.5% growth rate in UK consumer revenues and the advertising rebound, but effects of the pandemic are still being felt with EBITDA down 30% on 2019.

    The decline in Group revenue accelerated in Q4 due to the severe shock to the Italian operation from its loss of most premium football coverage, although we see upsides in a possible rights reshuffle.

    In 2022, Sky can leverage growth vectors including bigger content bundles, Glass, advertising innovations and broadband. Consolidating SVOD and telecoms markets may be more favourable to price increases.

    Access report