By Natalia Drozdiak
FRANKFURT--German pay-TV company Sky Deutschland AG (SKYD.XE)
Wednesday said its second-quarter net loss widened due to higher
interest payments, despite stronger subscriber growth.
Net loss for the quarter widened to 2.5 million euros ($3.34
million) from a loss of EUR0.9 million a year ago, disappointing
analyst expectations of a profit of EUR1 million. The company said
increased interest payments on loans weighed on the result. Sales
rose 14% to EUR428 million from EUR375million, just slightly below
analyst expectations of EUR429 million.
In July British Sky Broadcasting Group PLC (BSY.LN) bought a
57.4% stake in Sky Deutschland and all of Sky Italia from Rupert
Murdoch's 21st Century Fox for $9 billion, to create a pan-European
pay-TV giant with around 20 million customers across Germany,
Italy, Austria, the U.K., and Ireland. BSkyB has launched a
voluntary cash offer for the rest of Sky Deutschland's shares at
EUR6.75 per share.
21st Century Fox was until June 2013 part of the same company as
News Corp, owner of The Wall Street Journal and Dow Jones
Newswires.
Sky Deutschland said earnings before interest, tax, depreciation
and amortization, or Ebitda, rose 23% to EUR45 million from EUR37
million the year earlier, in line with expectations.
Direct subscribers rose 82,000 to 3,813,0000, up 10% from the
year earlier period.
The second quarter marks the end of Sky Deutschland's shortened
fiscal year. For the current full financial year, ending next June,
the company expects Ebitda between EUR80 million and EUR110
million, supported by strong growth in overall revenues. It sees
subscriber net growth of between 400,000 and 450,000.
Write to Natalia Drozdiak at natalia.drozdiak@wsj.com
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