Latest news with #SkyDeutschland
Times
05-07-2025
- Business
- Times
Call centre closures rack up costs for Sky
Sky's plans to axe three customer call centres will cost the broadcaster as much as £35 million, accounts filed by the broadcast giant show. The former FTSE 100 company, owned by US conglomerate Comcast since 2018, has also registered a new impairment charges in UK filings on its interest in on SkyShowtime, a lossmaking European streaming service that is a joint venture with America's Paramount. Led by chief executive Dana Strong, Sky's financial performance has become harder to gauge since it was swallowed up into Comcast. Its revenues and profits are reported through numerous companies in the UK. Accounts for six of them, filed last month, show a drop in operating profits of 20 per cent to £352 million, in part because of falling advertising revenues and investments in building Sky's mobile and broadband products. Sky said that revenues at its main businesses grew from £11.1 billion to £11.2 billion, although this does not account for all of its group turnover. It said that its earnings before interest, tax, depreciation and amortisation (Ebitda) were broadly flat at £1.2 billion. Comcast acquired Sky for $39 billion in 2018. Four years later, Comcast had to write down Sky's value by $8.6 billion. Further, smaller writedowns have been made since then. Last year's accounts showed that Sky had written down the value of its international operations, which include Sky Deutschland and Sky Italia, by £1.2 billion; while a £327 million impairment charge was registered against Showtime. In 2024, a further £245 million was written off the value of Showtime. Last month the company announced the sale of its German arm to RTL Group for an initial €150 million. And the accounts showed a further estimated cost of £30 million-£35 million for closing three of its ten customer service centres. This move, announced in March, put 2,000 jobs at risk. Sky Group's chief financial officer Simon Robson said the company had 'delivered strong financial results during a year of meaningful strategic progress', which included on-screen success for Sky Originals and the launch of the Sky Mobile network in Ireland and Italy.
Yahoo
27-06-2025
- Business
- Yahoo
Sky retreats from Germany after losing billions
Sky has made a costly retreat from Germany 15 years after Rupert Murdoch broke into the market with hopes of building a pan-European pay-TV empire. The German broadcaster RTL has acquired Sky Deutschland for just €150m (£128m). The figure represents a collapse in the value assigned to the business in 2018 when Sky was acquired for £30bn by the US cable giant Comcast in a blockbuster auction. At that time Brian Roberts, Comcast's executive chairman and controlling shareholder, said Sky's continental footprint would provide crucial scale. The takeover of Sky would help Comcast compete in the increasingly global entertainment business against the likes of Netflix and Amazon, investors were told. However, it quickly proved that Mr Murdoch had sold up at the peak of pay-TV in Europe, as streaming began to make growth much more challenging. The difficulties that Sky had experienced in making Sky Deutschland profitable would not be easily solved under new ownership. The decision to sell Sky Deutschland at a heavy loss will be received as further recognition by Comcast that it overpaid for Sky. Sky acquired full control of Sky Deutschland in 2014 in a deal that valued the German operation at more than £4.4bn. It said on Friday that if RTL is able to hit profit targets it is in line to receive an additional €377m on top of the €150m cash up front. Sky Deutschland has never made a profit, operating in a market of famously thrifty consumers. However, following determined cost-cutting under Comcast it is expected to break even this year. The sale comes after repeated attempts by Comcast to exit Germany, which never achieved the scale of even Sky's tricky Italian business. Talks last year were overshadowed by uncertainty over Sky Deutschland's crucial top-flight football rights. They were secured in December, giving new impetus to the discussions. The agreement marks Mr Roberts' most drastic move yet in its battle to make his takeover of Sky more palatable for Wall Street, which has never shown enthusiasm for his European empire-building. Comcast already reduced the value of Sky by $8.6bn (£6.3bn) in 2022 and stopped breaking out its performance in financial reports. Last year, it also reported a £1.2bn write-down on loans to its German and Italian operations, which were bought by Sky in a £7bn deal in 2014. Struggles in Europe have prompted further cost-cutting efforts at Sky, which recorded a pre-tax loss of £773m in 2023, according to its latest accounts. Plans to cut 2,000 customer service roles were announced in March. However, as well as securing the sale of Germany, Sky has delivered apparent progress in Italy. Revenues there were up 8.2pc last year to €2.4bn and it swung from a loss to underlying earnings of €177m. Thomas Rabe, the chief executive of RTL, said the deal would 'bring together two of the most powerful entertainment and sports brands in Europe, and create a unique video proposition across free TV, pay-TV and streaming'. The German division, which operates in Germany, Austria, Switzerland and parts of Italy, holds the rights to broadcast the Bundesliga, the German football league, until 2029. Francois Godard, an analyst at Enders Analysis, said Sky had struggled in Germany with market share languishing around 10pc. Mr Godard said that earlier valuations of Sky Deutschland had been based on 'magic growth ... Of course, that did not happen'. He added: 'Germany has always been different from the UK. They never reached the kind of penetration they had in the UK.' Meanwhile, Sky's attempted overhaul was dealt a blow last year after bosses discovered an embarrassing advertising blunder. This stemmed from Sky uncovering miscalculations in its ad sales that meant its partners did not receive the correct revenues from their deals dating back years. Like other broadcasters, Sky has also been navigating a shift from linear TV to streaming, as customers switch from expensive satellite TV packages to on-demand streaming apps. Next year, it will face further competition as HBO launches its Max streaming service. In December, Sky secured a deal to keep HBO's shows, such as a new Harry Potter series, bundled with its service, but they will no longer be exclusive to the UK broadcaster. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-06-2025
- Business
- Yahoo
RTL to buy Sky Deutschland for €150mn in TV consolidation effort
RTL has agreed to buy Comcast's Sky Deutschland for €150 million as the media conglomerate seeks to stave off competition from US streaming platforms. On top of the €150mn upfront cost, the group may pay a further €377mn if RTL's share price rises above €41 apiece five years after the deal's close. RTL said that the acquisition, if approved by regulators, would allow it to become the third-biggest provider of streaming services in Germany after Netflix and Amazon Prime. The deal is expected to close next year. Comcast, Sky's parent firm since 2018, has been looking to sell Sky Deutschland for several years. The German subsidiary has never made a profit but it is expected to break even this year. The firm has notably been struggling as competition from streaming services heats up. However, Sky won a significant deal to exclusively show most Bundesliga football matches last year, through to the end of the 2028-29 season, boosting its attractiveness. 'The business is on track to achieve EBITDA break-even, reflecting the success of our turnaround plan. Combining the strength of our brand with RTL builds on that momentum and opens up even greater opportunities,' Dana Strong, Group CEO at Sky, said in a statement. Related Warner Bros. Discovery to split, dividing TV and streaming services Netflix and France's TF1 join forces as traditional TV struggles Thomas Rabe, CEO of RTL, noted: 'the synergies are estimated to be around €250mn per annum within three years after closing, creating significant shareholder value'. Combined, the groups will have around 11.5mn subscribers. Under the terms of the deal, RTL will have the right to use the Sky brand in Germany, Austria, Switzerland, Luxembourg, Liechtenstein and South Tyrol. RTL has been looking to secure new revenue streams through premium subscriptions, as it operates several television and radio stations that are free to air. The decision to buy Sky Deutschland is the biggest deal it has struck since it was formed in 2000. In 2023, RTL had its eyes on another consolidation project, bidding to acquire Dutch media conglomerate Talpa Network. Competition authorities said the merged group would be too dominant in the Netherlands. RTL then proposed to sell its Dutch subsidiary RTL Nederland to Belgium-based DPG Media, although regulators have yet to give the green light. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Telegraph
27-06-2025
- Business
- Telegraph
Sky retreats from Germany after losing billions
Sky has struck a cut-price deal to sell its German television business after losing billions of pounds on a troubled expansion spree. The media giant announced the sale of Sky Deutschland to Radio Télévision Luxembourg (RTL), Germany's biggest broadcaster, on Friday, in a deal that values the business at €150m (£128m). Comcast had been exploring the sale of Sky Deutschland for several years, which was bought from Rupert Murdoch's Fox for £2.9bn in 2014 but has never turned a profit. Cost-cutting The sale forms part of attempts by Sky-owner Comcast to radically scale back the British broadcaster, which is struggling amid increased competition from streamers. Comcast already slashed the value of Sky by $8.6bn (£6.3bn) in 2022 after acquiring the business for $31bn in 2018. Last year, it also reported a £1.2bn write-down on loans to its German and Italian operations, which were bought by Sky in a £7bn deal in 2014. Struggles in Europe have prompted further cost-cutting efforts at Sky, which recorded a pre-tax loss of £773m in 2023, according to its latest accounts. Plans to cut 2,000 customer service roles were announced in March. Meanwhile, RTL, which is part of media conglomerate Bertelsmann, could pay a further €377m (£321m) for Sky Deutschland based on its future performance. For example, extra payments will be triggered if RTL's share price exceeds €41. The combined business will have 11.5m customers. Thomas Rabe, the chief executive of RTL, said the deal would 'bring together two of the most powerful entertainment and sports brands in Europe and create a unique video proposition across free TV, pay-TV and streaming'. 'Germany has always been different' The German division, which operates in Germany, Austria, Switzerland and parts of Italy, holds the rights to broadcast the Bundesliga (the German football league) until 2029. Francois Godard, an analyst at Enders Analysis, said Sky had struggled in Germany with market share languishing around 10pc. He said earlier valuations of Sky Deutschland had been based on 'magic growth … of course that did not happen'. 'Germany has always been different from the UK. They never reached the kind of penetration they had in the UK.' Meanwhile, Sky's attempted overhaul was dealt a blow last year after bosses discovered an embarrassing advertising blunder. This stemmed from Sky uncovering miscalculations in its ad sales that meant its partners did not receive the correct revenues from their deals dating back years. Like other broadcasters, Sky has also been navigating a shift from linear TV to streaming, as customers switch from expensive satellite TV packages to on-demand streaming apps. Next year, it will face further competition as HBO launches its Max streaming service. In December, Sky secured a deal to keep HBO's shows, such as a new Harry Potter series, bundled with its service, but they will no longer be exclusive to the UK broadcaster.
Wall Street Journal
27-06-2025
- Business
- Wall Street Journal
Comcast Sells Sky Deutschland to RTL as Media Deals Pick Up in Europe
Comcast CMCSA 1.06%increase; green up pointing triangle is selling its Sky Deutschland unit to Bertelsmann's RTL RRTL 16.75%increase; green up pointing triangle Group for up to $617 million, as the wave of dealmaking that is reshaping the U.S. television sector crosses the pond. Media companies on both sides of the Atlantic are trying to adapt to the rise of streaming platforms, which has intensified competition for consumers' watching time and advertisers' spending. In response, legacy companies are shaking up their portfolios and pursuing a series of deals that promises to reshape the media landscape.
