Sky makes strong start to FY with Q1 sales up

Sky said it has made a strong start to its FY with Q1 sales rising 13% to £3.15bn, or up 5% on a like-for-like basis.

Reported revenue was up in UK and Ireland, Germany and Austria and Italy.

"We are on track as we enter our busy Q2 trading period and we remain focussed on delivering our clear strategy for growth," said CEO Jeremy Darroch in a statement.

"I'm pleased with the start we have made to the year, with like-for-like revenue growth of over 5% and more than 100,000 new customers joining Sky. We finished the quarter strongly after a slower start against the backdrop of the Rio Olympics and UEFA Euro 2016.

"It was also a strong quarter of innovation with the launch of our new streaming service, Sky Ticket, in Germany; Ultra HD in the UK, Ireland, Germany and Austria; and our enhanced mobile TV proposition, Sky Go Extra, in Italy, as we transform all our markets to multi- platform distribution services.

"We are on track financially in a year of investment on screen. We are bringing customers the very best TV with more of the biggest Premier League matches, Europe's best box set service and more new and exclusive original drama.

"We are already seeing the benefit with good growth in revenues, more new customers joining us and existing customers consuming more. Alongside this we are making very strong progress on efficiency with operating costs for the quarter lower than a year ago in absolute terms.

"Looking ahead, the forthcoming launch of our mobile proposition will add another major product offering to our UK line up and will give our customers the opportunity to take even more from a brand known for great customer service and quality products.

"In Germany, the upcoming launch of Sky 1 builds on a series of recent steps transforming the appeal of our proposition beyond our traditional sports base, including the new Entertainment pack, adding Sky Box Sets to the service, and our new Sky+ Pro set-top box.

"And in Italy, customers can look forward to a quarter of unprecedented innovation, with the launch of HD programming on demand, a brand new user interface and our Sky Kids app all coming before Christmas."