Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Sky reports strong quarter before bid battle steps up

Published 04/19/2018, 06:41 AM
Updated 04/19/2018, 06:50 AM
© Reuters. FILE PHOTO:Sky News logo is seen in west London

By Paul Sandle

LONDON (Reuters) - Sky (L:SKYB), the pay-TV group at the center of a takeover battle between Fox, Disney and Comcast, reported a strong third quarter on Thursday, underlining its appeal to rival U.S. entertainment groups who want to expand in Europe.

Chief Executive Jeremy Darroch said the British company was "well placed for the future" regardless of which company emerged as its ultimate owner.

Sky added 38,000 customers, taking its customer base to nearly 23 million homes.

Core earnings for the nine months to end-March were up 10 percent to 1.7 billion pounds ($2.4 billion) on like-for-like revenue up 5 percent to 10.1 billion pounds.

The latest battle to buy Sky started in December 2016, when Rupert Murdoch's Twenty-First Century Fox (O:FOXA), the owner of 39 percent of the company, agreed to buy the rest.

Since then, the deal has been stuck in regulatory purgatory, a tortuous process due to end in June.

But if Fox receives clearance it is unlikely to end up as the long-term owner of Sky.

Murdoch agreed to sell most of Fox to Disney (N:DIS) for $52.4 billion in December, including its stake in Sky.

Fox spurned a higher offer from U.S. cable giant Comcast (O:CMCSA) over concerns about regulatory risk and its stock value, a filing showed on Wednesday.

After losing that battle, Comcast said it was considering making a 12.50 pounds a share offer for Sky, valuing the group at $31 billion, and trumping the 10.75 pounds offer agreed by Fox.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Darroch said on Thursday there had been some interaction between Sky and Comcast in terms of the regulatory process.

"They haven't yet come forward with a full offer, as and when they do that, if they do, then we will obviously come back and talk a bit more in detail then," he told reporters.

Fox/Disney and Comcast want to buy Sky to scale up against online groups Netflix Inc (O:NFLX) and Amazon.com Inc (O:AMZN).

Darroch said Sky was continuing to improve its own products and services to ensure it provided the content entertainment its customers wanted.

It will launch streaming service Spotify (N:SPOT) on its flagship Sky Q platform next week, and will offer Netflix (O:NFLX) in a Sky package in Britain before the end of the year, he said.

"Customers can look forward to an even broader choice of entertainment through our pioneering new partnerships with Netflix and Spotify, together with our new Premier League deal which secures the UK rights until 2022," he said.

Sky shares were trading at 13.05 pounds at 1036 GMT, down 0.3 percent.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.