Shares in Sky (LON:SKY) have fallen marginally into the red as the company updated investors on its nine-month performance, posting a rise in like-for-like revenue and operating profit, while noting that it expects the consumer environment to remain challenging. The results come at a sensitive time for the FTSE 100 group which is currently anticipating a bidding war between Rupert Murdoch’s 21st Century Fox and Comcast Corp.
As of 10:30 BST, Sky’s share price had given up 0.23 percent to 1,305.50p. The shares are underperforming the broader UK market, with the benchmark FTSE 100 index having climbed marginally higher and currently standing 0.21 percent up at 7,332.90 points. The group’s shares have added more than 34 percent to their value over the past year, as compared with about a three-percent rise in the Footsie.
Sky posts results
Sky announced in a statement today that its like-for-like revenue had increased five percent to £10.1 billion in the nine months ended March 31, while its Established Business EBITDA had climbed 14 percent to £1.8 billion. The group’s operating profit meanwhile came in 22 percent higher at £857 million.
“It’s been a good quarter for Sky,” the pay-TV provider’s chief executive Jeremy Darroch commented in the statement. “Whilst we expect the consumer environment to remain challenging, the business is in good shape and we remain on track for the full year.”
Sensitive time for Sky
Sky’s results come with the Competition and Markets Authority currently reviewing 21st Century Fox’s offer for the FTSE 100 company. Earlier this year, however, Comcast Corp also announced a possible offer for the group. The issues has been complicated further by Disney’s bid for Fox, with the UK Takeover Panel having recently ruled that Disney must make its own offer for Sky if Fox’s bid is blocked.