A better than expected start to the year has seen Sky increase its revenue and profit guidance for 2021.
It says it expects the net profit to be between $20 and 30 million. That’s up from the May forecast of between $5 and $15 million. Revenue will be in the range of $680 to $710 million. Previously it was forecast to be between $660 and $700 million.
Sky says its core business, satellite TV, has seen customer growth for six months in a row. Meanwhile, the number of customers leaving the service has fallen to the lowest level in three years.
The company reports strong revenue from its streaming operations. Its new Neon service has performed well. Sky has also tightened its cost control. There have been some savings from renegotiated rights deals, Covid-19 restrictions continue to impact these.
Chief executive Martin Stewart says there is still uncertainty, yet it is good to have an optimistic update for investors.
He says: “The last few months have reinforced the ‘power of our bundle’ and our ability to offer a one-stop-shop for all of our customers’ entertainment and sport needs. We are looking forward to making life even better for our satellite customers when we add Sky Broadband to the mix in early 2021.”