Sky Deutschland Q3 2012 results
Delivering strong growth across all products
Q3 EBITDA positive; 9M EBITDA break-even
Strong financial performance
• Q3 EBITDA: positive €18.6m (+€37.2m yoy)
• 9M EBITDA: positive €1.0m (+€98.0m yoy)
• 9M Revenue: €976m (+€147m/+18% yoy)
• Q3 ARPU: €32.22 (+€1.28 yoy)
Expanding operating momentum
• Total customers: up 80,000 in Q3 to 3,212,000 (+12% yoy)
• Record audience levels: 11.1m unique viewers in Q3 (+32% yoy)
• Sky Premium HD customers: up 165,000 in Q3 to 1,337,000 (+63% yoy)
• Second smartcard customers: up 45,000 in Q3 to 293,000 (+130% yoy)
• Sky+ customers: up 146,000 in Q3 to 730,000 (+240% yoy)
• Sky Go customer sessions: 8.2m in Q3 (+367% yoy)
Delivering the best entertainment for customers
• Sky’s HD selection now up to 61 channels
• Additional Sky HD channels distribution for Kabel BW and Unitymedia customers
• Live Bundesliga now available on the iPhone
• Sky Go Kids’ zone launching this month
• Sky+ 2TB: two terabyte hard disk option launching in December
• Sky ranked Number 1 for customer service
• Full year 2012 EBITDA expected to be significantly better than 2011. Full year 2013 EBITDA expected to be positive, and to grow strongly thereafter.
Brian Sullivan, CEO of Sky Deutschland: “The quarter saw another strong set of financial and operating results, including our second straight positive EBITDA delivery and a marked acceleration in our multi-product penetration. We also passed another important milestone with more than 2 million Sky households now watching our excellent Sky Welt HD channels. In addition, our enhanced coverage of the new Bundesliga, Champions and Europa League competitions, as well as the launch of even more HD channels have all meant an even better product and greater value for customers, which is especially important in these uncertain economic times. There has never been a better time to be a Sky customer.”
Unterföhring, 14 November 2012 – Driven by the growing depth and breadth of the product range, Sky Deutschland has once again delivered a strong operational and financial performance, with a net growth of 80,000 new customers in Q3 2012. The total number of customers reached 3,212,000 at the end of the quarter, which is an increase of 12% year-on-year, and gross additions were solid at 188,000. As expected, the 12-month rolling churn rate came in at 11.8%.
Q3 2012 EBITDA increased to positive €18.6m (Q3 2011: negative €18.6m), and 9-month EBITDA achieved break-even at €1.0m (9M 2011: negative €97.0m). Quarterly revenues climbed by 17% to €331.3m (Q3 2011: €284.3m), primarily due to customer growth (+12%) together with increasing ARPU, which rose by €1.28 to €32.22 (Q3 2011: €30.94). Total costs excluding depreciation were €312.7m (Q3 2011: €302.9m). The three week deferred start of the Bundesliga, the UEFA Champions League and the UEFA Europa League, resulted in a lower number of match-days in Q3. The resulting cost benefit of €13.6m in Q3 will reverse in Q4 2012. Net income for the quarter improved to negative €16.5m (Q3 2011: negative €46.9m).
Strong take-up of additional products
Sky’s HD offering saw continued demand with Sky Welt HD surpassing two million subscribers by the end of the quarter, growing 47% to 2,055,000 (Q3 2011: 1,401,000). The number of Sky Premium HD customers reached 1,337,000, up 63% year-on-year. At the end of Q3 2012 more than 41% (Q3 2011: 29%) of all Sky households subscribed to Sky’s leading Premium HD offering, and the total number of HD channels available to Sky customers was up to 61. Just recently, Sky’s HD offering has been enhanced for almost 13 million cable customers with Kabel BW customers now able to access 17, and Unitymedia customers now able to access 14 Sky HD channels.
Sky+, Sky’s fully integrated hard disk receiver, also generated strong demand with the number of Sky+ customers increasing 240% year-on-year to 730,000 at the quarter’s end (Q3 2011: 215,000). Approximately 23% of Sky homes had a Sky+ receiver, representing a threefold increase year-on-year. This winter Sky+ will be enhanced with a two-terabyte hard disk option. Customers will benefit from one terabyte of recording capacity with an additional one terabyte for expansion of the Sky Anytime service. This will enable customers to record more than 200 hours in High Definition or up to 600 hours in Standard Definition.
Sky Zweitkarte (second smartcard) customers increased strongly up 130% year-on-year to 293,000 (Q3 2011: 127,000), as a growing number of families look to enjoy Sky’s outstanding entertainment line-up in different rooms at the same time.
Sky Go – Germany and Austria’s leading over-the-top pay-TV service – recorded a substantial increase in usage in Q3 2012 with 8.2 million customer sessions compared to 1.7 million for the same period last year; an increase of 367%. And Sky is further expanding its leading offering: Since September Sky Go customers have been able to watch the Bundesliga and the 2nd Bundesliga live on the iPhone via Wi-Fi, alongside Sky’s comprehensive football pre and post match coverage. Sky Go also continues to grow for families and children. This month, Sky will introduce a dedicated Kids’ zone with a constantly updated selection of more than 100 programs from classics like “Tom & Jerry” and “Sylvester & Tweety” to family-friendly blockbuster movies like “The Muppets”, “Rio” and “Happy Feet 2”. A unique enhancement to the Sky Go user interface will enable children to easily and securely navigate through editorially selected and age-appropriate programs – with no risks or added costs, and ensuring even further peace of mind for parents.
Sky ranked Number 1 for customer service
As the third accolade in 2012 for great customer service, Sky was awarded the Number 1 provider of Premium TV in the Service-Champions 2012 ranking, the largest service ranking in Germany. In order to continue improving its already excellent customer service Sky recently expanded its existing service center in Schwerin with 70 additional employees. Also, in association with service provider Serco, Sky started operations of a new center in Teltow near Berlin creating more than 100 new jobs by the end of the year.
Record viewership levels
Viewing figures continue to go from strength to strength, underlining the growing appeal of Sky’s offering. In Q3 2012, Sky reached the highest audience levels since joining the official AGF measurement system. More than 11 million unique viewers in Sky homes tuned-in to watch Sky’s outstanding entertainment line-up across all Sky channels in the quarter, representing an increase of more than 30% year-on-year.
In addition, Sky’s mission to provide customers with best in class coverage was recently recognized by two renowned awards. For the fourth time Sky secured the 2012 Sport Bild Award for the best TV sport editorial department. And Sky also received the international Golden Podium award for its broadcast of the 2012 Champions League Final.
Celebrating Sky Sport News HD with a new flagship show
To mark the first birthday and outstanding success of Sky Sport News HD, Germany and Austria’s first live sport news channel, Sky will launch the “Inside Report”, a brand-new flagship sport show on 3 December 2012. The show will be broadcasted daily at
7 p.m. to give viewers a comprehensive overview of the most recent events and provide in-depth reports of leading topics of the day.
Combined investor/analyst and press call today at 9:30 am.
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