The end of the satellite dish. That’s the main headline out of Sky’s (SKY) half-year results. The broadcaster said all its content would be made available online, meaning customers will no longer have to attach satellite dishes to their properties. That served to distract attention from earlier news that the Competition and Markets Authority (CMA) believes the potential tie-up between Sky and Fox is not in the public interest on grounds of media plurality.
Instead, the group hailed a 5 per cent rise in half-year like-for-like sales to £6.7bn, which underpinned a dividend increase of 4 per cent (based on 2016’s 12.55p-a-share figure). That’s on top of the 10p special dividend already on the cards. This performance reflects a 365,000 increase in new users during the first half, as well as relatively flat customer churn figures. Regionally, the group reported growth across the UK & Ireland, Germany & Austria and Italy divisions – up 4 per cent, 8 per cent and 4 per cent, respectively.
Forecasts are suspended while regulatory debate over the merger continues. A full report on the 1,075p cash offer is expected on 1 May 2018, although analysts at Shore Capital suspect a suitable remedy will be found. This could include the possible sale or ringfencing of Sky News.
| SKY (SKY) | ||||
| ORD PRICE: | 1,033p | MARKET VALUE: | £17.8bn | |
| TOUCH: | 1,033-1,034p | 12-MONTH HIGH: | 1,040p | LOW: 885p |
| DIVIDEND YIELD: | 1.3% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 235p* | NET DEBT: | 183% | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 6.4 | 377.0 | 18.8 | nil |
| 2017 | 6.7 | 483.0 | 26.2 | 13.06 |
| % change | +5 | +28 | +39 | - |
| Ex-div: | 22 Mar | |||
| Payment: | 23 Apr | |||
| *Includes intangible assets of £9.52bn, or 554p a share | ||||
