Sky revenues plummet by $1bn

Sky’s advertising revenue plummeted 43% in Q2, dragging 2020 revenues down by more than $1bn (£770m).

According to the latest set of financial results from parent company Comcast, the pay-TV giant’s advertising income fell to $321m (£246m) for the three months to 30 June, from $563m (£431m) over the same period in 2019.

The declines were attributed to overall market weakness, which was “worsened by Covid-19”, while the effect of the whistle-to-whistle ban on gambling ads continued to be felt.

The reductions were the primary reason Sky’s overall revenues for the first half of 2020 slid 10.7% to $8.6bn (£6.6bn), from $9.6bn (£7.4bn) in 2019. Adjusted EBITDA was $749m (£574m) from $772m (£592m).

Content sales across the quarter, generated by Sky wholesaling its sports channels to rivals including BT, also sunk 38% to $234m (£180m) from $376m (£289m).

The broadcaster expects to mitigate some of these reductions, however, through a number of sports rights rebates due as a result of the pauses on a number of sporting competitions.

It will have also taken heart from holding on to 99% of its total customers and 95% of sports subscribers – who were entitled to pause their subscription over the period. The company’s overall number of customer relationships fell slightly to 23.7m, from 24m the previous year.

There was also a 500,000 swing in customer additions. In 2019, Sky added 300,000 customers – but it lost 210,000 over the last three months.

Comcast chief exec Brian L Roberts said: “At Sky, our flexible strategy helped retain customers until key sports returned in May and June.”