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Sky Deutschland’s disappointing figures -
Sky Deutschland’s disappointing figures
Thursday, 12 November 2009 19:50
German pay-TV operator Sky Deutschland managed to increase its subscription figures by just 67,000 in the third quarter of 2009, despite the introduction of a new package and pricing structure from July 4, scrapping the old name Premiere and a costly advertising campaign. The total number of subscribers now stands at 2.4 million.
Rising losses and sinking revenue gave little incentive to celebrate after the release of Sky’s quarterly figures. Revenue dropped to €208.5 million compared with €221.9 million in the third quarter of 2008, while losses rose from €89.1 million to €116.7 million, which the company attributed to higher programming, sales and marketing costs. Sky still expects to reach operative breakeven in the fourth quarter of 2010, for which a subscriber base of 2.8 to 3 million is necessary. Net profit is expected to be reached in 2011.
Despite the sluggish response to the efforts, CEO Mark Williams was optimistic: “We are pleased with our very solid start and the successful launch of the new Sky service. The response from our existing subscribers has been very positive, with many choosing to move immediately to the new Sky packages.”
Sky believes its HDTV offer, which will incorporate four additional channels in mid 2010, is one of its most important growth stimulants.