Sport suspension scathes Sky UK – Q1 2020 results

Report Overview

Sport suspension scathes Sky UK – Q1 2020 results

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Sport suspension scathes Sky UK – Q1 2020 results
Sky posted understandably weak results for Q1, amid the ongoing COVID-19 crisis. Revenue fell by 3.7% year-on-year, with most sports subscriptions on pause and advertising markets in shock
The company has guided to a 60% fall in EBITDA over the next two quarters, as it bears the extra costs of a very condensed sporting schedule, but much will depend on what level of rebate it negotiates from the rightsowners for the disruption
On screen, Sky faces similar production issues to other broadcasters, but it has continued to enhance its platform gatekeeper role and strong content offering, most recently by integrating Disney+

Contents

Headline financials

The asymmetric impact of sports suspension

UK TV audiences: mixed fortunes, but Sky is worse off

Production shutdown: Sky's content pipeline

Sky’s platform gatekeeper strategy

List of charts/tables

Figure 1: Headline financials ($m) and YOY growth rates*

Figure 2: Sky direct-to-consumer revenue YOY growth

Figure 3: Sky retail customer quarterly net adds (000)

Figure 4: Outlook for domestic football leagues

Figure 5: UK weekly TV viewing share, Sky Sports and Sky News, 2020 (%)