22 Feb 2013

Sky TV half-year profit strengthens

10:31 pm on 22 February 2013

Pay television operator Sky Network Television has reported a stronger half year profit led by more people using higher value services.

The company made a profit of $67.4 million in the six months to December, an increase of 7% compared with the same period the previous year.

The Auckland-based firm's revenue rose 4% to $443 million, due to more people using its higher value MySky HD boxes, while more users subscribed to premium channels like SoHo - all of which lifted average revenue per user.

That offset a fall in advertising revenue, which Sky said was due to a boost from the Rugby World Cup in the previous period not being repeated and free promotions dampening installation income.

Costs increased due to higher programming costs associated with the London Olympics.

MySky subscribers now account for more than half of its 847,000 customers.

The company said churn, or disconnections, edged up slightly to 14.6%.

Sky declared a higher dividend of 12 cents a share.