Daily Management Review

Numis Reiterate Sky’s Add Rating


Sky reports a revenue growth besides growth in other sectors.

Following the reports of Sky’s “quarterly interims”, Numis repeated an ‘add’ rating and target price of 1,250p for Sky”.
According to the broadcaster, within a span of nine months which ended in the month of March 2016, its revenue saw a five percent growth to £8.7bn”. On the other hand, the profit during the operations also increased by twelve percent whereby arriving at “£1.14bn”.
The Chief Executive at Sky, Jeremy Darroch’s statement shows that the company has gone through a “strong quarter” while it also crossed a “major milestone”, whereby together in Ireland and the United Kingdom the company delivered forty million products. Moreover, Sky has received “pleasing response” towards its premium of Sky Q box” prior to its “first installations in the current quarter”.
Furthermore, Sky informed that it has acquired a new customer base of “177,000” in the first three months of 2016, which means the number is “160,000” less in comparison to the “previous quarter”. In Numis’ words:
“Net product growth of 177,000 was ahead of consensus 162,000 with a notable performance in Italy and encouraging early response to the premium SkyQ product.
“We upgrade our lower end full year 2016 pre-tax profit/earnings per share forecast to £1,365m/63p (was £1,350m/62p); consensus is 63p. We leave our 2017 estimates, which include the higher costs of the new Premier League contract, unchanged at £1,325m/61p (consensus 59p).”