Sky reports slower rise in ad revenue

Sky's ad revenue increased 4% to £613m in the nine months to 31 March 2017, down from a 7% rise over the same period last year.

Sky reports slower rise in ad revenue

In its unaudited results released this morning, the broadcaster put the growth down to the "strong performance" in Italy and Germany, and Sky AdSmart in the UK.

It estimated that the UK advertising market was down 8% over the first quarter of 2017, and down 4% for the financial year so far.

Sky added: "Against this backdrop our own business continued to outperform the market, with our advertising revenues only down 3% year to date, driven by the quality of our audiences and the track record of innovation in advertising formats."

In the UK, the broadcaster reported a 20% drop, in constant exchange rates, in operating profit to £918m. For the group, operating profit was £1bn, down 11% in constant exchange rates.

Sky also announced a $250m (£195m) multi-year co-production deal with HBO "to oversee a development slate of world-class drama series".

Jeremy Darroch, group chief executive of Sky, said: "It's been another strong quarter for Sky, despite this being our seasonally quietest period. We continue to perform well, attracting another 106,000 customers across the group in the quarter, taking growth to 769,000 over the last 12 months.

"We have delivered strong revenue growth of 11% and are on track financially with operating profit for the nine months exceeding £1bn."