British Sky Broadcasting Group Plc made an official statement today, revealing that its full-year revenue increased by 5.5% due to the increased customer demand for the pay-TV providers phone, TV and Internet services.
Mr. Jeremy Darroch, who currently occupies the position of Chief Executive Officer, said in the companys statement, which was cited by Bloomberg: “Strong demand across the board has translated to a 7 percent increase in revenues,” referring to adjusted revenue.
According to the statement of British Sky Broadcasting Group Plc, the companys full-year revenue amounted to 7.63 billion pounds (12.97 billion dollars), beating the average analysts forecast of 7.62-billion-pound sales. The company also reported that its earnings before interest, taxes, depreciation, amortization in the year ended June 30th amounted to 1.67 billion pounds, which was also a better result than the 1.66-billion-pound estimates.
The companys full-year results are announced at a time when British Sky Broadcasting Group Plc has just reached an agreement over the acquisition of its sister companies located in Europe in a deal estimated at up to 7.4 billion pounds. The acquisition takes place after a couple of months of negotiations with 21st Century Fox.
The acquisition is considered part of the companys strategy to build the so-called “Sky Europe”. In addition, it will also be beneficial to Mr. Murdochs 21st Century Fox as it is to add fresh cash to the company.
As reported by the Financial Times, the Chief Executive Officer of British Sky Broadcasting Group Mr. Jeremy Darroch commented on the acquisition: “This transaction will create a world-class, multinational pay-TV business with enhanced headroom for growth and immediate benefits of scale.”
British Sky Broadcasting Group Plc was 5.05% down to trade at 878.32 pence per share by 12:38 GMT, marking a one year change of +3.33%. The companys market cap was 14.46 billion pounds as of yesterday. According to the information published on the Financial Times, the 21 analysts offering 12-month price targets for British Sky Broadcasting Group Plc have a median target of 945.00, with a high estimate of 1,170 and a low estimate of 600.00. The median estimate represents a 2.16% increase from the last price of 925.00.