|By Business Wire||
|May 7, 2014 02:25 AM EDT||
Sky Deutschland delivered strong growth in Q1 2014. The number of direct subscribers increased by 64,000 (Q1 2013: 42,000) to reach a total of 3,731,000 (Q1 2013: 3,405,000) at the end of March. Gross additions were 145,000 (Q1 2013: 137,000), which reflects the expanding underlying demand for Sky’s products, especially in light of the steps introduced at the beginning of 2013 to improve the quality of customer growth. Also as a result of the actions taken last year, customer loyalty has improved significantly, with the quarterly annualized churn rate decreasing to 8.8% (Q1 2013: 11.3%) and the 12 month rolling churn rate to 10.6% (Q1 2013: 12.0%) – both representing the lowest rates in the company’s history.
In Q1 2014, total revenues grew by 16% (Q1 2013: 14%) to €421 million (Q1 2013: €364 million). Subscription revenues were the key driver, up 14% to €384 million (Q1 2013: €337 million). This was supported by higher subscriber numbers as well as an increase in the average revenue per user (ARPU) of €1.43 to €34.58 (Q1 2013: €33.15). Total costs excluding depreciation amounted to €429 million (Q1 2013: €358 million). Compared to the previous year, this includes the step up in costs related to the enhanced Bundesliga rights as well as additional costs for one extra match day of the Bundesliga, which was brought forward to Q1 2014 due to the upcoming FIFA World Cup. As a result, EBITDA for Q1 2014 amounted to negative €8.6 million (Q1 2013: €5.8 million). The phasing impact of the additional match-day in Q1 2014 will reverse in the second quarter.
Brian Sullivan, CEO of Sky Deutschland: “We had a strong start to 2014. Never before has Sky seen higher levels of customer loyalty. With solid gross additions, churn rates at record lows and a steadily growing number of customers across all product categories, we have clearly shown the increasing appeal of our outstanding entertainment offering.
About Sky Deutschland:
Sky Deutschland AG is the leading pay-TV company in Germany and Austria with over 3.7 million subscribers and revenues amounting to more than 1.5 billion euros. The MDAX-listed company offers subscription TV as well as on-demand services for private and business customers.
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