Fat Prophets
A slightly weak figure looks to be the 15,000 net additions to TV subscribers in Q3. This compares to 40,000 in Q2 and 26,000 in Q1 and given that TV drives the whole business we will watch this metric closely.
However, it comes as operating margins are improving as the marginal cost of providing services to new or existing customers is low and the group continues to cut costs.
Financials
Margins improve at SKY
For the nine month’s of Sky’s financial year so far (to end March) revenue was up 5% which on face value doesn’t look strong.
The below graphic shows that while direct costs – content and so forth – as a percentage of sales are increasing other operating costs are falling. As such operating margins are trending higher to 17.9% in 2012 against 15% in 2010.
June 2012 | www.financial-spread-betting.com | 51