Shares of Sky Deutschland AG (SKDTF.PK, SKDTY.PK) increased around 7 percent in the morning trade on Frankfurt's Xetra, after the operator of a subscription television network reported Thursday a narrower net loss in its fourth quarter, benefited by higher revenues with increased subscriber numbers. Looking ahead for fiscal 2014, the company projects growth in EBITDA, a key earnings metric, and revenues.
The pay TV company operating in Germany and Austria said its fourth-quarter net loss was 80.3 million euros, narrower than prior year's 91.9 million euros. Earnings before interest, tax, depreciation and amortization or EBITDA was negative 37 million euros, compared to last year's negative EBITDA of 52.1 million euros.
Revenues for the quarter climbed 16.1 percent to 414.3 million euros from 356.8 million euros, mainly driven by a 15.4 percent increase in subscription revenues. Wholesale revenues more than doubled, and advertising revenues grew 19.4 percent. Meanwhile, revenues from hardware declined 22.6 percent.
In the quarter, operating expenses grew 10.3 percent to 451.3 million euros, surpassing revenues, and resulting in an operating loss.
In the quarter, the number of direct subscribers grew 9 percent year-over-year to 3,667,000 customers at year end, and the number of wholesale subscribers increased by 143,000 to 268,000 with the inclusion of Deutsche Telekom's former Ligatotal IPTV and mobile customers. The company noted that gross additions was 698,000, showing strong underlying demand.
Monthly ARPU grew to a new high in the fourth quarter of 34.56 euros, up 5.5 percent year-on-year.
For fiscal 2013, net loss narrowed to 133 million euros, and revenues increased 16 percent to 1.55 billion euros. The company said it delivered the first positive full year EBITDA under the Sky brand of 35 million euros.
According to the firm, continued customer growth combined with a rising average revenue per customer or ARPU led to this strong financial performance.
Looking ahead for 2014, Sky expects subscriber net growth of 400k to 450k, and full year EBITDA in the range of 70 million euros to 90 million euros, supported by a continued strong increase in total revenues.
Brian Sullivan, CEO of Sky Deutschland, said, "We have even more exciting plans for this year and expect a significant acceleration of net growth while maintaining a strong increase in revenues and EBITDA. 2013 has been a great year, and 2014 will be even better."
On Frankfurt's Xetra, Sky Deutschland shares are currently trading at 7.46 euros, up 0.45 euros or 6.48 percent.
For comments and feedback: editorial@rttnews.com