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Sky Deutschland swings to first quarterly net profit

Published 03/11/2014, 07:43
Updated 03/11/2014, 07:50
© Reuters Sky Deutschland headquarters one of the largest pay-TV operators in Germany and Austria is pictured in Unterfoehring
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FRANKFURT (Reuters) - German pay-TV provider Sky Deutschland (DE:SKYDn) swung to a first-quarter net profit of 12.3 million euros (9.63 million pounds) as it signed up close to 100,000 new subscribers.

The results mark the first net profit since the third quarter of 2007 for the company, which is controlled by Rupert Murdoch's entertainment group 21st Century Fox (O:FOXA).

Sky Deutschland's net subscriber numbers increased by 96,000 during the first quarter of the fiscal year, which ends June 30.

The broadcaster said on Monday it set a new record for live viewing of German Bundesliga soccer. In the first weekend, more than 4 million viewers tuned in to the live matches, which Sky said was its best season opening ever.

Sky Deutschland reported a 86-percent rise in first-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) to 54.4 million euros.

"All in all a solid set of key figures," said DZ Bank analyst Harald Heider, sticking to his "buy" recommendation.

Sky Deutschland is in the process of being combined with Rupert Murdoch's pay-TV companies in Europe, creating a media powerhouse with 20 million customers.

The company said it still expected 2014/15 EBITDA to reach between 80-110 million euros, while it would add 400,000-450,000 new subscribers.

© Reuters. Sky Deutschland headquarters one of the largest pay-TV operators in Germany and Austria is pictured in Unterfoehring

Sky Deutschland shares are indicated to open 0.7 pct higher but are likely to stay below the 6.75 euros BSkyB has offered.

(Reporting by Harro ten Wolde; Editing by Kirsti Knolle and Georgina Prodhan)

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