Sky PLC (LON:SKY) has reported a strong uplift in earnings and customer numbers in what could be its last set of full-year results as an independent company amid a bidding war over the broadcaster.
The FTSE 100 pay-TV group reported underlying earnings (EBITDA) for the full-year of £2.1bn, up from £1.9bn the year before, while like-for-like revenues climbed for the 29th consecutive year to £13.5bn from £12.9bn in 2017.
READ: UK Takeover Panel rules Disney would need to make minimum bid of 1,400p per share for Sky
The company also reported customer growth of 39% in the fourth quarter of its last financial year, taking the total number of European households using Sky to over 23mln, while its product portfolio saw growth of 81% in the same period.
The news will be likely to drive even more fierce competition in the bidding war that is currently still raging over the company between media giants Comcast, 21st Century Fox, and Disney.
While Fox, owned by media mogul Rupert Murdoch, currently owns 39% of Sky but has been trying to purchase the remaining 61% since 201 but has been continuously scrutinised by UK regulators for its potential impact on Murdoch’s influence in British media.
Sky’s group chief executive, Jeremy Darroch, hailed an “exceptional year” for the company, adding that the group had upgraded its services in Germany and Austria in order to sustain long-term growth in the largest European TV markets.
Commenting on the results and their potential impact on the bidding war, David Madden, market analyst at CMC Markets UK, said a takeover by Disney could be beneficial for Sky given the corporation’s “enormous back catalogue of content”, while Comcast’s decision to drop its bid for Fox’s assets to focus on Sky “underlines how serious they are”.
Although, he added that Sky should be wary of getting into bed with Comcast as the corporation didn’t “have the best reputation when it comes to customer service”.
Laith Khalaf, senior analyst at Hargreaves Lansdown, also commented: "[B]y stepping away from the Fox deal, Comcast will be able to reach deeper into its pockets if a bidding war escalates. That will serve as a deterrent to Disney, even if it is loath to lose out on the access to European markets that Sky promises, particularly to a direct rival like Comcast.
Khalaf added that the outcome may result in Disney taking the Fox media assets while Comcast takes the majority stake in Sky, as while Sky's shareholders believe "a better offer will be forthcoming...[Disney's] appetite for acquisitions may be sated".
In early trading Thursday, Sky shares were down 0.1% at 1,505p.
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