Sky profits hit by rising English Premier League bill

Sky has said rising costs from screening English Premier League football and a 'weaker UK advertising market' has dragged on profits.

Higher costs for screening English Premier League games dragged on Sky's profits. Picture: David Price/Arsenal FC via Getty Images

The broadcaster saw an 11 per cent drop in operating profit to £1.01 billion in the nine months to 31 March as it pointed to a £494 million bill linked to Premier League costs.

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On a statutory basis, operating profit fell from £802m a year earlier to £703m.

But chief executive Jeremy Darroch said: “We enter the final quarter of our fiscal year in good shape. Despite the broader consumer environment remaining uncertain, we continue to deliver on our strategy and are on track for the full year.”

Revenue rose by 5 per cent to £9.6bn during the period, with more than 100,000 new customers joining Sky in the third quarter.

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Sky also announced a $250m (£195m) partnership with American production company HBO. The partnership will bring together the Game Of Thrones broadcaster and producer, and aims to bring more “world-class drama series” to customers.

Sky is the subject of an £11.7bn takeover bid from Rupert Murdoch’s 21st Century Fox.

Fox is aiming to seize control of the 61 per cent of Sky it does not already own and the bid comes five years after Murdoch’s last tilt at taking the business over through News Corporation.

The deal has the green light from EU regulators, but Ofcom and the Competition & Markets Authority have until 16 May to investigate.

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