Sky focuses on sports and streaming – losses doubled

The British media and telecommunications conglomerate Sky doubled its losses last year due to increased investments in sports programs as well as film and TV production. Following its acquisition by the US media giant Comcast in 2018, Sky reported an operating loss of 224 million pounds, compared to a loss of 111 million pounds in 2022, according to documents filed with Companies House. Sky aims to gain a competitive advantage in the UK market with its sports coverage over rival broadcasters and US streaming giants. Last year, the company secured the rights to broadcast the majority of Premier League football matches for more than 5 billion pounds. The total revenue of the UK-based company remained unchanged at 10.2 billion pounds in 2023. The direct-to-consumer business, which includes mobile, broadband, and streaming, generated revenues of 8.5 billion pounds, marking a 1.5 percent increase compared to the previous year. This growth was attributed to the ongoing expansion and higher prices in mobile, broadband, and streaming services, including the launch of Sky Glass, a smart TV with an integrated subscription. Since the Comcast acquisition, Sky has accelerated its strategic shift from satellite to digital services. This restructuring has led to job cuts in the UK, where Sky employs about 27,000 people. A write-down of 1.2 billion pounds was recorded in the international business, following substantial loans to subsidiaries in Germany and Italy. Additionally, the company reported program costs of 3.4 billion pounds, which slightly increased due to the disruption of the football calendar caused by the World Cup, resulting in more games in 2023. Sky CEO Dana Strong emphasized in an interview with the Financial Times that the company is capturing the market for exclusive sports content in the UK and plans to show up to 1,200 football games annually. An upcoming renegotiation with Warner Bros Discovery concerning the HBO programming deal, which was signed in 2019 and expires next year, presents challenges. Recently, Sky alleged that the studio breached an agreement granting it the right to co-produce shows, including a new Harry Potter series, with the Max streaming service. Warner Bros Discovery intends to defend against the lawsuit, stating that "Sky is deeply concerned about the profitability of its business should it lose our award-winning content." Sky invests more than 500 million pounds annually in its own content, including productions like "Mary & George" and "Sweetpea.